Hedge funds investing in Greater China rebounded from their past two consecutive months of losses and returned 0.42% in May, though they remain in negative territory year-to-date with losses of 3.68%, according to the latest data from hedge fund research and data firm Eurekahedge.
The broader Asian hedge fund managers were up 1.33% with funds focused on Asia ex-Japan delivering gains of 1.94%, while those focused on Japan were up 0.80% in May.
Emerging markets focused hedge funds delivered strong gains in May, up 2.24% with managers reporting strong gains from their exposure to India.
But Eastern Europe and Russia focused hedge funds were the top performer for the month of May, gaining 8.37% as de-escalating tensions in the area stabilized regional stock markets.
On a year-to-date basis, hedge funds are up 1.91% globally while the MSCI World Index has returned 2.63% in the first five months of 2014. North American hedge funds lead the hedge fund rankings globally, up 3% so far and gaining 0.91% during in May.
In addition, global hedge funds crossed the US$2.1 trillion mark in May as fund managers delivered performance-based gains of US$9.29 billion during the month, according to the newly released data.
In terms of strategies, event driven, multi-strategy and long/short equities strategies lead the performance tables delivering returns of 1.88%, 1.45% and 1.37% respectively.
Fund managers using arbitrage strategies delivered their 11th consecutive month of positive returns, up 2.03% on a year-to-date basis.