Investors bought winning hedge funds and dumped losers in May

Global investors pulled $3.78 billion from hedge funds in May, despite overall outperformance against the stock market, a new survey from data firm eVestment shows. However, there was significant difference in redemptions based on size and performance.

Between the lines: Hedge funds with strong performance during the month saw inflows across asset classes, with the lone exception of multi-asset funds, while hedge funds that lost money broadly saw investors pull out their cash.

• Hedge fund returns overall were negative last month after 4 straight months of gains to start the year, but still posted much slimmer losses than the broader U.S. stock market.

The big picture: Hedge funds have seen $25.43 billion of outflows so far this year, and performance losses have further reduced the industry's total assets under management to $3.24 trillion.

Go deeper: The hedge fund moment is over