The Greenwich Global Hedge Fund Index ended June down 1.15 per cent based on preliminary estimates.
It outperformed global equity and credit markets as measured by the S&P 500 (-1.34 per cent), MSCI World Index (-2.61 per cent), and Barclays Aggregate Bond Index (-1.55 per cent).
Despite a positive start to June, most hedge funds were challenged by declining equity markets as the Federal Reserve announced the beginning of less accommodative policy in the US and signs of slowing growth and political turmoil emerged around the world. Early indicators show long-short credit managers struggled the most in June falling 2.65 per cent on average.
Equity market neutral and event driven were the only two positive strategies in June, improving 0.03 per cent and 0.58 per cent respectively. Event driven managers are the clear leaders in the first half of 2013, up 7.74 per cent YTD.
While June was a difficult month for most strategies, all still remain positive on the year on average, with the exception of managed futures strategies (-1.35 per cent YTD).