U.S. hedge funds return to black after stronger May

BOSTON, June 6 (Reuters) - Hedge funds are back in the black for the year after gains in May helped erase the industry's worst-ever losses at the start of 2008.

According to data released by Hedge Fund Research on Friday, the average hedge fund is now up 0.13 percent for the year, having gained 2.11 percent in May.

In April, the index rose 1.2 percent.

This marks a dramatic improvement from the start of the year when these loosely regulated portfolios that often promise to make money in all markets fell 2.8 percent during the first quarter.

Hedge funds specializing in energy and basic materials jumped 5.20 percent. Funds specializing in technology and healthcare gained 3.98 percent. (Reporting by Svea Herbst-Bayliss)