Hedge funds registered their first monthly loss of 2015 with the Eurekahedge Hedge Fund Index down 1.26% in June, while the MSCI World Index declined 2.88% during the month. Despite a strong start to the year, events in Europe and China dented hedge fund returns, with overall returns coming in at 3.31%.
Here are some key takeaways.
- European managers were down 1.11% in June, managing to outperform the MSCI AC Europe Index by 3.71%.
- Japan was the only developed market mandate that ended June in the positive, up 0.37% during the month and 5.34% year-to-date. Annual gains for 2014 stood at 4.40%.
- The Eurekahedge Long/Short Equity Hedge Fund Index is up 6.32% year-to-date, outstripping its gains of 3.35% from the preceding year. It also outperformed the MSCI AC World Index, which is up 3.71% in the first half of 2015.
- Asia ex-Japan mandated hedge funds lost 1.67% and recorded US$1 billion worth of performance-based losses in the worst month for regional managers since the taper tantrum of 2013.
- CTA/managed futures funds are the only hedge fund strategy in the red for the year, down 0.20% June year-to-date following steep losses of 2.63% during the month.