Hedge fund performance rose modestly in May by talk of losses associated with General Motors, according to hedge fund tracking firms, the New York Times reports. Even so, the year has been a wash for many fund of funds.

"This has not been a great year so far," said Antoine Bernheim, publisher of the U.S. Offshore Funds Directory and president of Dome Capital Management. While hedge funds are advertised as non-market-sensitive, the reality is that many hedge fund managers are finding that their offerings are closely mirroring market performance.

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