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Alternative Market Briefing

Hedge funds come out strong in June after the EU summit

Thursday, July 05, 2012

amb
Anthony Lawler
From Komfie Manalo, Opalesque Asia:

The hedge fund industry came out strong towards the end of June as the industry, particularly risk assets, rallied strongly on the positive news from the EU summit, according to GAMs "Insight Hedge Fund Performance in Q2."

According to the independent, active investment management firm, risk assets generally ended the quarter down, despite the powerful rally in late June.

The report said, "June and the second quarter of the year (Q2) proved challenging for active investment managers, with risk assets and sentiment proving generally cautious and bearish for the first two months of the quarter."

As at end June, the MSCI World index was up 6.3% year-to-date in U.S. dollar terms having given back 4.9% in Q2 despite posting a 5.1% gain in June. Credit markets continued to see inflows in Q2 and produced another quarter of positive returns as investors remain on the hunt for yield.

For June the HFRX Global index was down -0.3%. Year to date the index is up +1.2%.

According to GAM, the hedge funds space registered a strong and unexpected bounce at the end of last month that saw risk assets, and especially the most beaten-up areas of the market, post solid gains.

Anthony Lawler, Portfolio Manager at GAM, commented, "Hedge fund performance is in aggregate positive year to date through the end of June, but the late Jun......................

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