Hedge funds have shown “steady to excellent” year-to-date performance, with over 75% of managers recording gains through May’s equity rebound, according to an Alternatives Watch report citing PivotalPath data. PivotalPath’s Composite Index increased by 2% in May, bringing its year-to-date return to 2.1%. This outperformed the S&P 500’s 1.06% gain and the Nasdaq’s 1.02% decline over the same period.

The rally was primarily driven by strong performances in equity- and event-driven strategies. PivotalPath’s Equity Diversified Index rose 4.4% in May, pushing its 2025 return to nearly 5%, while the Event-Driven Index climbed 3%. Sector-focused managers saw a 2.8% gain, and equity quants added 2.2%. Even volatility hedges and credit strategies delivered positive returns of 1.7% and 1% respectively.

Conversely, global macro funds advanced modestly by 0.4%, but trend-following CTAs lagged, with the Managed Futures Index falling 1.5% and extending its 2025 loss to double-digits: 10%.

PivotalPath’s data, which covers over 3,000 institutionally relevant hedge funds and $3 trillion in industry assets, indicates that 77% of managers were profitable in May, and two-thirds are showing gains year-to-date

End Notes

Source: https://www.hedgeweek.com/hedge-funds-deliver-steady-to-excellent-returns-as-may-rally-fuels-h1-gains/