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 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%.

With the reversal in the market’s performance, the worst-performing hedge funds were short, market-neutral and risk arbirtrage funds, which returned, respectively, minus 4.77%, 0.17% and 0.57%.

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