Sunday, 28 August 2016
Last updated 1 day ago
Jul 25 2012 | 10:29am ET
Currency hedge funds were hit hard in June, sending the average fund to a first-half loss.
The Parker Global Strategies Currency Managers Index fell 1.14% last month. The decline leaves it down 0.35% this year, and marks the third month in six that the index lost ground.
"You can print our a euro chart for the month of June and frame it, and call it: nightmare for trend followers," Parker Global's Jon Stein told Dow Jones Newswires. Late June's agreement on a bailout of Spain's banks sent the common currency higher, while most hedge funds were positioned for a continued weakening.
While euro bets proved disastrous for currency funds, they managed to profit on investments in the Brazilian real and Mexican peso. In addition, this month has proved kinder—so far—than last, Stein said, with hedge funds booking gains on the Israeli shekel, Polish zloty and South African rand.