Sat, Jan 31, 2015
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   |   
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. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would