Hedge funds’ monthly results returned to the black in June with a 1.94 per cent return, a turnaround from May’s 1.66 per cent decline, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
By comparison, the S&P 500 Total Return Index was up 7.07 per cent in June.
With positive returns in five of the past six months, hedge funds have gained 7.06 per cent in the first half of the year, its best start since 2009 when the Index gained 10.93 per cent in H1.
“Declining interest rates in the US and Europe fuelled June’s rally in share prices and provided a strong tailwind for hedge funds,” says Sol Waksman (pictured), president of BarclayHedge.
All hedge fund sectors but one – the Volatility Trading Index, down 0.38 per cent — posted gains in June. Leading the way were the Emerging Markets Latin America Index, up 5.41 per cent for the month, the Emerging Markets Latin American Equities Index, up 4.14 per cent and the Technology Index with a 3.81 per cent return.
“In June, a weakening US dollar worked to the benefit of many emerging market firms that have dollar-denominated debt,” adds Waksman.
Several sectors posted double-digit year-to-date gains through June, led by the Healthcare & Biotechnology Index with a 12.73 per cent gain. Other double-digit gainers on the year included the Emerging Markets Eastern European Equities Index, up 12.59 per cent, the Emerging Markets Eastern Europe Index with a 12.10 per cent year-to-date return and the Technology Index, up 11.71 per cent year-to-date.
Only two sectors were in the red for the year-to-date. The Volatility Trading Index was down 1.46 per cent through June while the Equity Market Neutral Index was down 1.09 per cent.
