Hedge fund performance dips in June

The hedge funds industry posted its first monthly loss of 2015 in June. The Eurekahedge Hedge Fund Index was down 1.26 percent – the worst monthly performance within the last two years.

However, hedge funds still comfortably outperformed underlying markets, such as the MSCI World Index which declined 2.88 percent during the month.

Eurekahedge’s preliminary figures for June show performance-based losses of US$18.9 billion, while net investor flows were positive at US$3.7 billion.

The stock market downturn in Europe and China contributed to the performance decline which lowered gains for the first six months of the year to 3.31 percent, compared to 3.11 percent during the same period in 2014.

Funds investing in Asia, excluding Japan, lost 1.67 percent and recorded US$1 billion worth of performance-based losses based on preliminary numbers in the worst month for regional managers since 2013.

Japan-mandated funds were the only developed market showing a positive performance in June, up 0.37 percent for the month and 5.34 percent for the year to date.

European managers were down 1.11 percent in June but managed to outperform the MSCI AC Europe Index by 3.71 percent.

After hefty losses of 2.63 percent in June, CTA/managed futures funds are the only hedge fund strategy with a loss for the year, down 0.20 percent.

Long/short equity funds are up 6.32 percent for the year, well above the performance of 2014 with 3.35 percent and exceeding underlying equity markets such as the MSCI AC World Index which is up 3.71 percent in the first half of 2015.