Eurekahedge: Hedge Funds Dip 1.26% in June, Remain Up 3.31% YTD

Jul 14 2015 | 1:19pm ET

Hedge funds lost -1.26% in June, according to a flash update of the Eurekahedge Hedge Fund Index. Unsurprisingly, events in Europe and China dented hedge fund returns during the month, although they still outperformed the MSCI World Index, which lost 2.88%.
 
June was the first negative month of 2015 for the index, and the result pushes the first half gain down to 3.31%. It earned 3.11% in the same period last year, according to Eurekahedge.

Other key aspects of the update:

•  Hedge funds posted their worst monthly returns over the last 24 months. Preliminary figures reveal performance-based losses of US$18.9 billion while net investor flows were positive at US$3.7 billion.
 
•  European managers were down 1.11% in June though managing to outperform the MSCI AC Europe Index by 3.71%.
 
•  Japan was the only developed-market mandate which ended June in the green, up 0.37% during the month and 5.34% year-to-date. 
 
•  The Eurekahedge Long/Short Equity Hedge Fund Index is up 6.32% year-to-date, comfortably outstripping its gains of 3.35% from the preceding year as well as outperforming the MSCI AC World Index, which is up 3.71% in the first half of 2015.
 
•  Asia ex-Japan mandated hedge funds lost 1.67% and recorded US$1 billion worth of performance-based losses based on preliminary numbers in the worst month for regional managers since the taper tantrum of 2013. 
 
•  CTA/managed futures funds are the only hedge fund strategy in the red so far for the year, down 0.20% through June year-to-date following steep losses of 2.63% during the month.
 
•  Managers focused on the Greater China region took the biggest hit, and were down 3.24% though also outperforming the benchmark Hang Seng and the CSI 300 indices, which lost 4.28% and 7.28% respectively in June. 
 
•  On a year-to-date basis, the Eurekahedge Asia ex Japan Hedge Fund Index is up 13.17% and has outperformed the MSCI Asia ex Japan Index by 8.22%. 
 
Eurkahedge’s flash update data is based on 48.24% of funds which have reported June 2015 returns as at 14 July 2015.
 
Eurekahedge tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe. The firm's database tracks more than 130 data points on more than 24,000 alternative funds.

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