The Hennessee Hedge Fund Index advanced 0.64% in June, bringing its year-to-date gains to 11.74%. By comparison the Standard & Poor’s 500 Index increased 0.02% (1.78% year-to-date), the Dow Jones Industrial Average decreased 0.63% ( down 3.75% YTD), while the NASDAQ Composite Index advanced 3.10% (16.36% YTD).
John Meriwether will close the hedge fund he founded following the collapse of his Long-Term Capital Management.
Meriwether’s latest hedge fund failure is nowhere near as spectacular as that of LTCM in 1998, which required a $3.6 billion bailout arranged by the Federal Reserve.
Michael McCarty, the equity and options strategist who predicted Bear Stearns’ collapse just days before the Wall Street bank fell, is starting his own hedge fund.
Crude oil has broken through levels not seen since 2014 and it appears to be entering a new phase, ending the downward super cycle that took crude from above $100 per barrel to under $30, and entering a phase where both supply and demand are expected to grow.