Hedge funds run by firms including Ray Dalio’s Bridgewater Associates LP posted gains last month as Paul Tudor Jones’s main strategy at Tudor Investment Corp. fell.
Hedge funds on average rose 1.2 percent in May, according to Chicago-based Hedge Fund Research Inc., underperforming the 2.1 percent gain for the Standard & Poor’s 500 Index, which rallied to a record from an April 11 low amid optimism for economic growth.
Equity, event-driven and macro hedge funds posted advances, according to HFR. The May gains bring hedge-fund returns on average to 2 percent for the year’s first five months, compared with 4.1 percent for the S&P 500.
“On the equity side, markets recovered from the March and April rotations,” Anthony Lawler, money manager at $120 billion Swiss asset manager GAM, wrote in a report issued on June 4. “Event-driven managers continue to feel tailwinds given the level of announced deals. Macro had a stronger month, partly on the back of the U.S. dollar strength especially versus the euro.”
Stock strategies advanced 1.4 percent in May and 1.7 percent this year, according to HFR. Event-driven managers climbed 1 percent last month and 3.1 percent in 2014 and macro funds rose 0.8 percent last month and 0.3 percent this year.
Bridgewater’s Pure Alpha II rose 2.1 percent in May and 6.1 percent in 2014, according to a person familiar with the matter. The Westport, Connecticut–based firm, run and founded by Dalio, manages $160 billion in assets.
Renaissance Technologies LLC, the $22 billion New York-based investment firm founded by Jim Simons, rose 1.4 percent last month through May 23 in its Renaissance Institutional Equities Fund, bringing year-to-date gains to 2 percent, according to the person. The Renaissance Institutional Futures Fund was flat last month and increased 4.8 percent this year through the same period, the person said. Renaissance Institutional Diversified Alpha Fund climbed 0.9 percent in May and 2.8 percent in 2014 through the same period.
Jones’s $13 billion Tudor fell 0.5 percent in its Tudor BVI Global fund in May, bringing this year’s loss to 4.4 percent, the person said. Last month Jones said macroeconomic investing needs “central bank Viagra” as interest rates stay depressed for long periods of time. The European Central Bank this week said it took its deposit rate negative, the first major central bank to do so, and offered liquidity to lenders to encourage credit growth.
Balyasny Asset Management LP, the $5.5 billion hedge-fund manager run by Dmitry Balyasny, posted a 1.1 percent May gain in its main Atlas Global fund, bringing its 2014 return to 2.8 percent, according to a performance update to investors obtained by Bloomberg News. The Atlas Fundamental fund climbed 0.1 percent last month and 12 percent in 2014 and the Atlas Enhanced fund increased 2.1 percent in May and 5 percent year-to-date.