Sun, Aug 14, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin All-Strategies Hedge Fund benchmark down 0.75% in June (4.5% YTD), ending positive five-month streak

Thursday, July 16, 2015
Opalesque Industry Update - The hedge fund industry has posted average returns of -0.75% for June 2015, the first month this year of negative performance. Despite this, the benchmark has still returned 4.50% year-to-date.

Single-manager hedge funds were not the only fund structures which fared poorly in June; UCITS posted returns of -1.76%, and CTAs made losses of - 2.66%, their worst monthly performance since July 2008. The only leading strategy with positive performance for the month was relative value, which posted a return of 0.17%. Relative value strategy funds have seen only two months of negative performance in the past 18 months.

Other Key Hedge Fund Industry Stats:

• Both Asia-focused funds and Europe-focused funds saw negative performance of -1.82% and -1.06% respectively in June, in the wake of turbulence surrounding Chinese and Greek markets.
• Despite their poor performance in the past month, Europe- and Asia-based funds accounted for more launches in Q2 (22% and 9% respectively) than in Q1, as North America-focused funds dropped to 67% of the market total.
• Discretionary CTAs posted returns of -0.53%, compared to systematic CTAs which saw average returns of -3.56%. Despite this, CTAs as a whole are still holding on to positive performance for the year with 0.11%.
• Funds of CTAs were hit especially badly with an average return of -6.95% for June and currently stand at -5.10% for 2015 YTD. Funds of hedge funds were down 1.22% in June 2015, but are up 2.93% for the year to-date.
• Alternative mutual funds have seen a notable decline in the proportion of fund launches they account for in the past six months. From a record high of 16% of total hedge fund launches in Q4 2014, they now represent only 3% of all launches in Q2 2015.
• Credit strategies have fallen from 17% of launches in Q1, to 9% of launches in Q2, a figure similar to their market share in H2 2014. Conversely, relative value funds have more than doubled their proportion of launches to 12%, up from 5% in Q1.

“June has seen hedge funds post their first month of negative performance so far in 2015,” commented Amy Bensted, Head of Hedge Fund Products at Preqin. “The industry has had a run of five months of positive returns from the start of 2015, and surpassed full-year 2014 performance in May. However various macroeconomic events, notably the Greece/Eurozone crisis and the turbulence experienced in the China stock market, has led to hedge funds failing to generate positive returns in June and has dented the year-to-date return of the sector. CTAs have also suffered further following their strong returns in Q1 2015; a difficult Q2 has left the strategy only just clinging on to positive performance through the first half of the year.”

To view the further information and analysis, please see the full report: Source

Press release

Bg

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. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du

  6. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  7. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  8. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  9. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  10. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du