HFRI: Hedge Funds Up 3.2% In First Half

Jul 9 2014 | 9:25am ET

Hedge funds continued to sputter in June, closing out the first half of the year far behind the broader markets, according to Hedge Fund Research.

The HFRI Fund Weighted Composite Index added 1.31% last month to end the first half up 3.2%. By contrast, the Standard & Poor’s 500 Index is up more than 6% on the year.

A handful of strategies tracked by the HFRI suite were able to top that. India-focused funds have soared 33.36% this year (5.49% in June), and energy and basic materials funds are up 11.36% (3.81%). Yield alternatives funds returned 9.72% in the first half (1.96% in June) and Middle East and North Africa funds 7.24% (down 0.34% in June).

Distressed and restructuring funds rose 5.41% on the half (1.39% in June), relative value funds 4.84% (1.02%), volatility funds 4.8% (1.02%), special situations funds 4.56% (1.57%), event-driven funds 4.26% (1.27%), convertible arbitrage funds 3.46% (0.53%), commodity funds 3.44% (1.06%), Equity hedge funds 3.32% (1.73%), emerging markets funds 2.88% (1.47%), quantitative directional funds 2.4% (0.79%), merger arbitrage funds 2.03% (0.95%), equity-market neutral funds 1.84% (0.03%), activist funds 1.82% (down 0.37%) and macro funds 1.09% (0.8%).

Several strategies ended the first half in the red. Short-bias funds were predictably hurt by the continuing surge in stock prices, falling 3.68% through June (down 1.64% in June itself). Currency funds swung to a loss last month, dropping 0.89% to end the first half down 0.81%. Hedge funds focused on Russian and Eastern Europe and Japan also suffered, with the former dropping 1.4% (up 2.9% in June) and the latter 0.89% (up 3% in June).


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...