HFR: Mixed Returns For Hedge Funds In June

Jul 20 2009 | 12:46pm ET

It doesn’t get much more mixed than this: Hedge Fund Research’s HFRX Global Hedge Fund Index returned just 0.04% last month, while 27 of the 55 strategy and sub-indices tracked by HFR finished June in the red.

The overall HFRX Global index rose 5.56% in the first half, well behind most other hedge fund indices, which added approximately 10% in the first six months of the year.

The index was kept above water last month by activist hedge funds, which rose 5.49% (21.15% YTD), China-focused funds (up 3.82% in June), Asia ex-Japan funds (3.14%, 21.22% YTD) and relative-value arbitrage funds (3.09%, 16.26% YTD).

Like the rest of their hedge fund peers, emerging markets funds were strongly mixed in June. China funds did well, and are the best-performing strategy of the first half with a 36.26% return, but funds focused on Russia and India took a bath last month, dropping 3.96% and 2.88%, respectively. Still, they remain among the top-performing hedge fund strategies of the year, with India funds up 33.45% and Russia funds up 20.55%. BRIC funds—those focusing on Brazil, Russia, India and/or China—are up 24.36% year-to-date, following last year’s disastrous losses for emerging markets funds.

India- and Russia-focused funds weren’t the only losers last month, although Russian funds did take the biggest hit. Systematic diversified funds dropped 3.4%, and posted the worst first half of any strategy with a 9.43% decline. Macro funds shed 3.33% on the month (down 5.96% YTD), active traders fell 3.06% (up 0.28% YTD) and distressed securities funds dropped 2.34% (down 8.65% YTD).

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Editor's Note