<p><span>Hedge funds gained in May as equities recovered the prior month’s decline, and as inflationary pressures remained elevated, but investors positioned for interest rate reductions in 2H24. Led by directional Equity Hedge and Event-Driven strategies, the HFRI Fund Weighted Composite Index advanced +1.3 percent in May, with additional positive contributions from Relative Value Arbitrage strategies offsetting a decline in Macro strategies. The HFRI Equity Hedge (Total) Index jumped +2.5 percent for the month, reversing the April decline and marking the fifth gain for this index in the trailing seven months, posting its strongest monthly return since February.</span></p>