Opalesque Industry Updates - |
On the other hand, even though their was still much ground to make up to recover from last month’s spectacular blow, the commodities market managed a significant positive return (+1.43%). The fixed income market covered mixed ground, with regular bonds exhibiting noticeable profits (+1.13%) but convertible bonds remaining in negative territory (-0.93%). The Lehman Global Bond Index (+1.86%) managed its most profitable return over the past fifteen months.
After six months on the rise, the dollar finally fell back (-0.39%) and after last month’s crunch (-2.28%), the credit spread shrank more moderately (-0.57%).
Despite the adverse conditions on convertible bonds and the credit spread, the Convertible Arbitrage strategy managed a positive return (+0.29%). Along with the good results of regular bonds and commodities, the CTA Global strategy recorded a positive yet modest return (+0.20%). After a mishap in May, the Fixed Income strategy (+0.90%) resumed its ascent started in January 2009.
All the equity-oriented strategies suffered from the ongoing slide in the stock markets. Both the Event Driven (-1.29%) and Long/Short Equity (-1.69%) strategies registered significant losses again, although about half the magnitude of May’s dip. The Equity Market Neutral strategy (-0.47%) was naturally less impacted but performed only marginally better than the previous month.
Overall, the Fund of Funds strategy inevitably stumbled (-0.82%). However, in the current depressed situation, all hedge fund strategies clearly outperformed the stock market.