Friday, 25 July 2014
Last updated 18 hours ago
Jul 5 2011 | 2:22pm ET
Hedge funds suffered their second-straight losing month in June, as stocks also followed their down May with a red June.
The average hedge fund dropped 1.59% last month, Hedge Fund Research's HFRX Global Hedge Fund Index shows. The benchmark is down 2.12% on the year.
The Standard & Poor's 500 Index was down 1.67% in June, but the broader market index remains up 6% on the year.
Systematic diversified funds were particularly hard-hit, dropping 3.49% on the month (down 6.4% year-to-date). Macro funds didn't do much better, losing 2.35% in June (down 2.14% YTD).
Equity hedge funds were down as much, falling 2.36% (down 8.32% YTD). Fundamental value funds shed 2.57% and are down 9.95% on the year.
Not every strategy is in the red on the year—although almost all were down in June. Special situations funds were up 2.25% in the first half despite losing 1.52% on the month, while multi-strategy relative-value arbitrage funds were up 1.92% (down 0.39% YTD).
The one strategy not to lose ground in June, equity market neutral, was up 2.72% after rising 0.89% last month.
Event-drive funds lost 1.31% on the month but were up 1.44% over the year. Merger arbitrage funds lost 1.52% in June but are up 2.25% this year. Convertible arbitrage funds are up 1.64% in the first six months of 2011 after dropping 1.21% in June, and relative value funds are up 1.39% after losing 0.51% on the month.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…