Industry Updates

Hedge funds slide -1.04% in June, Barclay Hedge Fund Index +1.04% YTD

Monday, July 18, 2011

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Opalesque Industry Update - Hedge fund performance was down for the second month in a row, with a 1.04% loss in June according to the Barclay Hedge Fund Index compiled by BarclayHedge. Year-to-date the Index is up just 1.02%.

“After eight straight months of gains going back to September of 2010, hedge funds have lost ground for two months in a row, giving up most of their 2011 profits,” says Sol Waksman, founder and president of BarclayHedge.

Overall, 14 of Barclay’s 18 hedge fund indices lost ground in June. The Equity Long Bias Index was down 1.84%, the Event Driven Index lost 1.81%, Healthcare & Biotechnology fell 1.83%, Global Macro was down 1.50%, and Convertible Arbitrage slid 1.26%.

“Equity markets lost ground in June despite a robust 4.5 percent rally late in the month,” says Waksman.

“Concern of an economic slowdown coupled with apprehension over the inability of political leaders to agree on a plan to repair government balance sheets has made investors skittish.”

The Barclay Equity Short Bias Index regained some lost ground in June, surging 4.69%. Short Bias is now down just 2.96% for the year.

“Through April, traders on the short side of the market were deeply in the red,” says Waksman.

“They’ve shot back up more than five percent over the past two months, putting their funds in a much stronger position starting the second half of 2011.”

After two quarters in 2011, the Healthcare & Biotechnology Index leads all hedge fund strategies with a 6.70% gain. The Technology Index is up 4.88%, Fixed Income Arbitrage has gained 5.08%, the Distressed Securities Index is up 4.02%, and Convertible Arbitrage has added 3.51%.

The Barclay Fund of Funds Index lost 1.36% in June, and is down 0.55% for the year.

(press release)

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