Hedge Funds Fall Across Board In June

Jul 10 2013 | 11:42am ET

All major hedge fund strategies registered declines in June, falling an average of 1.3% according to the latest data from eVestment.

The June results put hedge funds down 0.02% in the second quarter and up 3.2% through the first half of 2013.

Credit strategies posted their largest monthly loss since September 2011 and mortgage-focused funds had their worst month since the height of the financial crisis. Directional credit funds were down 1.56%. Macro funds were down even further, losing 1.69%, a loss eVestment said seems to be attributable to a treasuries’ swoon.

Directional equity strategies underperformed the S&P 500 in June, but eVestment identifies losses from dedicated emerging market equity focused strategies as the primary culprit. “With dedicated EM exposure removed, directional equity funds lost only -0.5% in June, were +1.5% in Q2 and +6.7% YTD 2013,” said eVestment VP Peter Laurelli.

Emerging market strategies experienced large losses in June with India funds down 8.45%, Emerging Europe funds down 3.05%, China funds down 2.96% and  Brazil funds down 0.68%. India funds also posted the biggest losses YTD, down 14.55%.

Commodities posted another negative month in June, shedding 0.52%, putting them down 3.11% YTD. Laurelli said the group has produced aggregate losses in nine of the last 10 months.

Energy sector hedge funds were one of the few bright spots during the month. The group has returned an average of nearly 7% in 2013.

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