May was an excellent month for many of the big hedge funds, according to freshly tabulated data.
NYT: On average, hedge funds climbed 5.23 per cent last month, leaving them up 9.43 per cent this year, according to an index of monthly returns compiled by Hedge Fund Research. Major funds including Moore Capital Management, Paulson & Company, SAC Capital Advisors and the Tudor Investment Corporation scored big gains across sectors using nearly all strategies as confidence slowly crept back into the equity and debt markets.
“May has been a remarkably strong month as it relates to hedge fund performance across the board,” said Andrea Gentilini, director of prime services for Barclays Capital. “Even the strategies that have been under severe stress over the course of the last two years have continued to post strong performance.”
Among the big winners this year is Citadel, which is up 20% and Carl Icahn, who’s up 16% this year — the fact that his investing style seems to draw him to many of the most poorly run, broken companies is obviously working nicely in this year of the trash-led rally. Not surprisingly, John Paulson, who killed it by betting against subprime, is doing nicely once again, gaining about 9% so far this year.