Hedge funds beat underlying markets in June

Hedge funds were up 0.64% in June, while underlying markets as represented by the MSCI World Index were down 1.38%, finds the Eurekahedge Hedge Fund Index.

Here are additional highlights.

• On a year-to-date basis, hedge funds were up 1.34% following four consecutive months of positive returns, also beating the MSCI AC World Index which fell 1.43% over the same period.
• How Top Hedge Funds Weathered ‘Brexit Day’: The S&P500 index lost -3.59%, which essentially wiped out all its 2016 gains in one day. MSCI Europe (USD) and MSCI World (USD) lost -8.77% and -4.90% respectively. At the same time, Quantvest’s Eurekahedge 50 Tracker Index, which tracks the performance of the world’s top 50 hedge funds, declined only -0.36%.
• The Eurekahedge Trend Following Hedge Fund Index, a sub-group of the broad CTA Index outshone in June and was up 5.96% during the month, as winning trends in the credit, commodities and FX space emerged.
• North American hedge fund managers lead the performance among developed mandates, gaining 0.56% during the month. On the other hand, Japanese and European hedge funds fell into negative territory in June, losing 2.22% and 1.58%. On a year-to-date basis, North American hedge fund managers were up 2.33% beating their Japanese and European counterparts, who were down 5.28% and 2.89%, respectively.
• Asia ex-Japan hedge fund managers gained 0.45% during the month, but are down 1.95% year-to-date. Underlying Greater China hedge funds were up a marginal 0.03% during the month and lost 6.03% year-to-date, outperforming the CSI 300 Index which fell 15.47% year-to-date.
• Latin American hedge funds were up 4.33% in June and up 12.98% year-to-date, outperforming other regional mandates over both periods respectively. Managers have also outperformed underlying markets as represented by the MSCI Latin America Index, which was up 4.10% in June and 12.75% year-to-date. On a year-to-date basis, 81% of Latin American hedge fund managers have posted positive returns, with 30% of them posting year-to-date returns greater than 10%.
• CTA/managed futures hedge funds posted the best returns among strategic mandates, up 3.61% in June. Managers also outperformed other strategic mandates on a year-to-date basis, gaining 4.69% — their best year-to-date returns since 2008.

Staff

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