Hedge funds up 1.82% in June, continuing positive performance

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Cayman Compass is the Cayman Islands' most-trusted news website. We provide you with the latest breaking news from the Cayman Islands, as well as other parts of the Caribbean.

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.

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