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Alternative Market Briefing

Hedge funds down in June due to concerns about European debt woes, commodities and the U.S. dollar

Monday, July 11, 2011

amb
Oliver Schupp
From Precy Dumlao, Opalesque Asia:

The hedge fund industry suffered another blow in June as investor concerns over the rising risk of default in European sovereign debt obligations, declining commodities as well as the continued economic weakness and a fragile U.S. dollar, pulled down equity markets across the globe last month.

According to hedge fund data provider Hedge Funds Research Inc., volatile June markets compounded with the losses of May have already eaten up most of the gains registered by managers during the first half of the year.

The HFRI Fund Weighted Composite Index posted a decline of -1.22% for June, the largest decline since May 2010. The index saw negative contributions across all strategy areas. During the first half of 2011, the HFRI Fund Weighted Composite gained +0.76%, surrendering first quarter gains in the second quarter with weakness concentrated in macro strategies.

Last week, it was reported that the HFRX Global Hedge Fund Index also fell -1.59% in June (2.12% YTD), its second losing month after May which declined -1.39%, with systematic macro funds and stock-focused funds returning the worst performance. The report cited investors concerns over the weak economic data coming from the U.S.......................

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