A study by Deutsche Bank
on hedge funds showed that the median fund gained 0.68 per cent last
month, taking global median 2013 performance up to 4.68 per cent through
to the end of May.

Distressed, equity long/short and emerging markets equity also posted
gains, ending the month at 8.67 per cent, 6.84 per cent and 6.27 per
cent respectively, according to the Deutsche Bank Monthly Hedge Fund Trends report for May. 

Equity long/short funds in Asia continued to perform at high levels,
with Japan long/short up 15.26 per cent last month, though the MSCI
AsiaPac Index was down 5.12 per cent.

In the US, distressed funds posted gains of 8.71 per cent
year-to-date, while in Europe global long/short strategies were up 6.12
per cent year-to-date. Global dispersion of returns across all funds
continued to remain high, with funds in the 75th percentile returning
2.40 per cent, while those in the 25th percentile lost 1 per cent.

The MSCI World 30-day volatility index plummeted 21.90 per cent,
ending May at 8.65. Gross fundamental equity exposure and net
fundamental equity exposure also decreased in May, ending the month at
2.49 (down 2.52 per cent) and 0.66 (down 1.29 per cent).