HFRI: Hedge Funds Down 1.31%

Jul 10 2013 | 1:37pm ET

Hedge funds were bathed in red in June, as all but a handful of strategies suffered losses.

The average hedge fund fell 1.31% last month, according to Hedge Fund Research's HFRI Fund Weighted Composite Index. The benchmark is up 3.59% on the year.

Among major strategies, emerging markets hedge funds were hardest-hit, falling 3.96% in June (down 0.28% year-to-date). Macro dropped 1.45% (down 0.35% YTD), equity hedge 1.37% (up 5.34% YTD), event-driven 1.16% (up 5.44% YTD) and relative-value 0.93% (up 3.26% YTD).

Among substrategies, there were a handful of winners last month—yield alternatives rose 1.65% (12.41% YTD), short-bias 0.74% (down 9.96% YTD), technology and healthcare 0.65% (9.21% YTD) and equity market-neutral 0.43% (3.34% YTD). But they were vastly outnumbered by the losers.

Asia ex-Japan funds lost 5.74% on the month (up 0.86% YTD) and Latin America funds 5.15% (down 5.43% YTD). Russia and Eastern Europe funds dropped 2.78% (down 2.99% YTD) and global funds 2.38% (up 0.87% YTD).

Outside of emerging markets, things were better—but not by much. Corporate fixed-income shed 2.66% (up 0.7% YTD), systematic diversified 1.79% (down 0.51% YTD), multi-strategy relative-value 1.42% (up 3.93% YTD) and distressed and restructuring 1.18% (up 6.84% YTD). Merger arbitrage fell 0.49% (up 1.21% YTD), convertible arbitrage 0.4% (up 4.94% YTD) and quantitative directional 0.31% (up 4.9% YTD).

The HFRI Fund of Funds Composite Index gave back 1.44% in June to cut its 2013 return to 3.28%.


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