Some hedge funds face steep losses after betting on the hot sectors

Hedge fund investors are bracing for a river of red ink as firms begin reporting returns for May when the stock market hovered near bear territory on disappointing earnings and worries about aggressive rate hikes, investors and fund managers said. 

Data from Hedge Fund Research shows the HFRX Global Hedge Fund Index slipped 1 per cent in May, leaving it down 3.31 per cent for 2022 till date. But preliminary numbers from some firms show far bigger losses, especially at funds that had invested heavily in technology and biotechnology stocks.

The broader S&P 500 index ended around flat for May, with the