Final performance for the Credit Suisse/Tremont Hedge Fund Index is confirmed up 0.43 per cent in June, taking year-to-date gains to 7.18 per cent.
Final performance for the Credit Suisse/Tremont Hedge Fund Index is confirmed up 0.43 per cent in June, taking year-to-date gains to 7.18 per cent.
Oliver Schupp, president of Credit Suisse Index, says the second quarter appears to have been a turning point for hedge funds with 87 per cent of all gains for the year generated in the last three months.
Convertible arbitrage managers were once again the strongest performing sector, up 4.05 per cent for the month. The strategy has been up every month this year, with managers capitalizing on mis-pricings in the space. Schupp says the outlook for the sector remains strong as many companies continue to view converts as a cheap financing option.
Other positive performances were recorded by emerging markets (0.69 per cent), event driven (1.02 per cent), fixed income arbitrage (1.83 per cent) and multi-strategy (1.62 per cent).
Managed futures managers, however, continued to struggle as volatile markets displayed unclear or difficult-to-follow trends. The strategy was down 2.32 per cent in June.
Dedicated short bias also posted a negative performance, down 1.96 per cent, as did equity market neutral (-0.21 per cent), global macro (-0.85 per cent) and long/short equity (-0.04 per cent).
The following two funds are no longer reporting to the broad index: Quantek Opportunity Fund and Avenue Asia.
The broad index is constructed using the Credit Suisse/Tremont database of more than 5,000 hedge funds. It includes both open and closed funds located in the US and offshore, but does not include fund of funds. In order to qualify for inclusion in the index selection universe, a fund must have a minimum of USD50m under management, a 12-month track record, and audited financial statements.
