Thursday, 21 August 2014
Last updated 3 hours ago
Jul 8 2008 | 9:40am ET
Hedge funds’ recent rally wilted in the hot sun of June, according to Hedge Fund Research.
After two months of positive returns, hedge funds closed out the second quarter the same way they did the first: on a down note, with the HFRX Global Hedge Fund Index dropping 0.83% on the month. The index is now down 1.03% on the year.
Event-driven funds were by far the biggest losers in June, falling 3.35% on the month (down 4.02% year-to-date). Convertible arbitrage (down 1.77%, down 6.69% YTD), relative value arbitrage (down 1.55%, down 7.95% YTD) and equity hedge funds (down 1.06%, down 1.22% YTD) also saw big declines.
Just two of the eight HFRX strategy indices enjoyed an up June. Macro funds were almost as good as event-driven funds were bad, adding 3.25% on the month. Macro remains far and away the best-performing strategy this year, at 14.1%—almost six times better than its closest competitor, merger arbitrage, which is up 2.38% on the year after a 0.25% decline in June. Equity-market neutral funds also enjoyed a positive month, rising 1.02% in June (up 2.32% YTD).
The other five strategy indices are in the red year-to-date.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note