Automated Hedge Funds Suffer in May

Online, June 11, 2011 (Newswire.com) - The computer driven hedge funds which follow a trend for trading have suffered badly in May. The automated technology which is used by various hedge funds to catch a particular trend to trade, failed to deliver.

This May, oil lost $13 a barrel at one point on May 5 and the silver fell 12 percent on the same day, many funds were unable to recoup the heavy losses suffered in the commodities sell-off at the start of the month.

Among computer-driven funds, Man Group's $22.7 billion (13.8 billion pounds) AHL fund fell 4.6 percent from May 2 to 30, while $5.1 billion manager Aspect saw its Diversified fund lose 5.3 percent. Mulvaney Capital's Global Markets fund, a top performer last year with gains of 34.9 percent, dropped 11.8 percent in May, according to Lipper.

Meanwhile, Canada based Exhilway, which manages $3 billion, rides the storm and managed to generate positive return of 15.98% for its hedge fund Exhilway Global Opportunities (EGO)-A, 17.45% for EGO-B and 20.88% for EGO-C.