Strong gains last month have lifted hedge funds' 12-month returns to almost 14%, their highest in three years, but their performance over that period has closely mirrored the equity market according to new figures.

Data provider Hedge Fund Research said its overall hedge fund index had risen by 2.43% in May. This has taken the cumulative return for the year to date to 7.19%, which is almost as high as the hedge fund industry achieved during the whole of either 2004 or 2005.