Hedge funds continued their positive performance this year with the Eurekahedge Hedge Fund Index gaining 1.82% in June.
Data provider Eurekahedge said, despite mixed economic data during the month, returns were supported by strong equity markets on the back of optimism over the progress of the US-China trade talks and a more dovish interest rate stance of central banks.
In comparison, global equity markets, as represented by the MSCI ACWI index, grew by 5.41% in June.
North American managers posted gains of 2.11%, while Asia-focussed managers were up 2.18%, the Eurekahedge June Flash Update shows.
Eastern European and Russian managers generated the highest returns of 5.73% in the month, continuing the strong run in 2019 with gains of 12.65% for the year, after posting the largest losses of all regional mandates in a dire year for hedge funds in 2018.
Fund managers applying equity long-bias strategies returned 3.06% in June, bringing their year-to-date return to 10.56%.
About 77.7% of funds in the Eurekahedge Hedge Fund Index posted positive returns in June, and 24.4% of hedge fund managers in the database managed to generate double-digit returns during the first half of 2019.
The average hedge fund returned 5.81% this year compared to global equity markets which, like MSCI ACWI index, are up 14.39%
Crypto hedge fund managers benefitted from the rally in crypto assets which saw Bitcoin breaching the US$12,000 level for the first time since the Q1 2018 crash.
The Eurekahedge Crypto-Currency Hedge Fund Index gained 13.85% in June, recording its fifth consecutive positive month of the year. The index is up 100.59% as of June 2019 year-to-date, which compares with a first half-year gain of 211.06% for bitcoin.