Sat, Apr 18, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge Hedge Fund Index down -0.19% in June (+1.33% in YTD)

Wednesday, July 11, 2012
Opalesque Industry Update - Hedge funds witnessed a flat to slightly negative performance in June amid reversals in market trends. The Eurekahedge Hedge Fund Index was down 0.19%1 during the month, bringing its June year-to-date performance to 1.33%. In comparison the MSCI World Index was up 3.65%.

Key highlights for June 2012:

  • Hedge funds posted negative returns for the fourth consecutive month in June, the longest losing streak since 2008.
  • North American fixed income and relative value hedge funds gained 3.71% and 3.40% respectively in June.
  • The Mizuho-Eurekahedge Long Short Equities Index was up 1.10% in June, showing that larger funds outperformed their peers.
  • Hedge funds down 2.4% in 2Q-2012, making it the worst second quarter on record for the industry

June proved to be a tough month for hedge fund managers with frequent trend reversals and shifts in risk sentiment making it a difficult environment to operate in. The first half of the month witnessed positive movements in the markets amid expectations of stimulus by the US Federal Reserve and the election of pro-bailout parties in Greece. The second half of the month witnessed an increase in risk aversion amid concerns about Spanish banks, but positive developments at the EU summit led to a month-end rally.

Hedge funds under-performed the markets during June, with most losses coming from trend-following strategies with global mandates. Most regional hedge funds delivered positive returns, with managers investing in Eastern Europe and Russia posting the largest gains. The Eurekahedge Eastern Europe & Russia Hedge Fund Index was up 3.83% in June, while the RTS Stock Index gained a strong 8.70%, following a sharp rally on the last trading day of the month. North American and Japanese hedge funds also witnessed positive returns of 0.77% and 2.15% respectively, with most managers gaining from currency exposures and long positions in equity indices and financial stocks. European and Asia ex-Japan hedge funds witnessed losses of 0.15% and 0.43% respectively as many managers had been positioned for greater declines in the markets.

Strategy Indices
Most strategies posted marginally positive returns in June with relative value and fixed income hedge funds delivering the highest returns. The Eurekahedge Relative Value Hedge Fund Index increased 1.85% as market neutral and mean reversion trades locked in profits for the managers. Macroeconomic uncertainty and recession in European economies helped fixed income hedge funds, which averaged gains of 1.18%. Distressed debt managers were down 0.38% for the month even as US high yields and leveraged loans gained through the month. The frequent changes in market sentiment due to Spain’s request for financial support and concerns over global growth made it difficult for trend-following managers to navigate successfully through the month. After an excellent performance last month, CTA/Managed futures hedge funds dropped 2.09% in June...Full press release and performance table: Source
km

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. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  2. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  3. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

  4. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  5. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

 

banner