So far this year, hedge funds are not living up to their reputation as a good way of beating the market. Hedge funds rose 2.94% in May, but the S&P 500 gained 5.09% in the month, according to HedgeFund.net. So far this year, the S&P is up 9.52%, whereas hedge funds are up 6.79%. However, the top 25% of hedge funds have gained 10.06% year-to-date.
Among the top-performing hedge funds during May were technology funds, which rose 8.3%. The next best-performing sector was macro hedge funds, which rose 5.48%.