Thu, Oct 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds post first decline for 2013 in June, HFRI down -1.3%

Monday, July 08, 2013
Opalesque Industry Update:Hedge funds posted the first monthly decline for 2013 in June, ending a streak of seven consecutive months of gains, the longest run of positive performance seen by the industry since 2011, according to data released today by HFR, the established global leader in the indexation, research and analysis of the hedge fund industry.

The HFRI Fund Weighted Composite Index declined -1.3 percent for the month, only the second decline in the trailing thirteen months. All four main HFRI Strategy Indices posted losses for June, with declines led by Macro and Equity Hedge strategies. The HFRI Macro Index posted a decline of -1.5 percent with negative contributions from Trend Following strategies, Fixed Income, Emerging Markets and Commodity Metals exposures. Emerging Markets posted losses across equity, sovereign bond and currency markets, as US yields rose significantly for the month; HFRI Emerging Markets Index declined by -4.0 percent, led by declines in Emerging Asia and Latin America, which declined -5.7 and -5.2 percent, respectively. The HFRI Systematic Diversified/CTA Index declined -1.8 percent, erasing the previous YTD gain of +1.3 percent through May. Commodity-focused strategies also declined by -1.4 percent, while Discretionary Macro strategies declined -1.9 percent.

HFRI Equity Hedge Index fell by -1.4 percent, led by a decline of -2.7 percent in Fundamental Growth strategies. However, the Equity Hedge sub-strategies of Short Bias, Technology/Healthcare and Equity Market Neutral posted gains of +0.7, +0.7 and +0.4 percent, respectively.

HFRI Event Driven Index declined -1.2 percent in June, its first decline following 12 consecutive months of gains, with performance adversely impacted by a significant widening of high yield credit spreads, as well as equity market losses. Activist strategies posted gains which only partially offset other Event Driven losses, while HFRI Merger Arbitrage Index posted a decline of -0.5 percent.

Fixed income-based Relative Value Arbitrage posted its first decline in 13 months, with the HFRI Relative Value Index declining -0.9 percent; the HFRI RV: Multi-Strategy Index, including credit multi-strategy funds, declined -1.4 percent, offsetting a positive contribution from Yield Alternative strategies, which gained +1.7 percent. The HFRI RV: Fixed Income - Corporate Index was the weakest area of RVA sub-strategy performance, falling nearly -2.7 percent, while the HFRI Asset Backed and Convertible Arbitrage Indices posted more moderate declines of -0.7 and -0.4 percent, respectively.

“Risk-off sentiment dominated June hedge fund performance as investors and fund managers positioned for curtailment of stimulus efforts by the U.S. Federal Reserve, resulting in increased volatility and pressuring emerging market, interest rate-sensitive and commodity-focused funds,” stated Kenneth J. Heinz, President of HFR. “While tactical positioning and effective short hedging mitigated a portion of the losses across these areas, June performance was significant in that the trends of the previous six months across most asset classes were reversed as bond yields posted a sharp increase. Many hedge funds have and continue to be actively and conservatively positioned for the complex impacts of stimulus extraction, and investors are likely to benefit from this positioning in the second half of the year.”

HFR

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t