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In the week ending July 22nd 2022, a report said that hedge funds declined for a third consecutive month in June with a return of -2.7%, recording their worst monthly performance since the onset of the pandemic in March 2020. Following the retreat, the Eurekahedge Hedge Fund Index has slipped to -5.6% YTD, marking its worst H1 performance since inception. Global equities, as represented by the S&P 500, fell by a staggering 8.4% as investors moved to price in an increased risk of recession as the Federal Reserve embarked on an aggressive series of interest rate hikes to fight soaring inflation.

Meanwhile, led by gains in Macro, CTA, Risk Mitigation and Commodity strategies, the HFRI 500 Macro Index gained +13.2 percent in the 1H 2022, topping the decline of the S&P 500 by 3300 bps and the Nasdaq Composite Index by nearly 4400 bps as US equity markets experienced the worst 1H of a calendar year in over 50 years. Negatively correlated Macro gains offset weakness in directional and higher beta strategies, bringing the performance of the HFRI 500 Fund Weighted Composite Index to a decline of -4.1 percent in 1H22, with both Macro and the overall Composite exhibiting the highest outperformance versus equity market declines in a first half of a year since inception (1990).

In performance news, Mark Spiegel's Stanphyl Capital hedge fund is in a roll, gaining almost 37 percent during the first half of 2022; Former Marshall Wace portfolio manager Ramesh Karthigesu's hedge fund gained more than 15% in the first half, as a market downturn leaves rivals struggling to recoup losses; Lone Pine Capital is the latest Tiger Cub and hedge fund in general to report a sharp loss in the second quarter - the firm, founded......................

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