June was a positive month for hedge fund performance, says EDHEC-Risk

Eleven out of 13 hedge fund strategies covered by the EDHEC-Risk Alternative Indexes delivered positive returns in June. The two exceptions were CTA Global and Short Selling. 

The best performing strategy was Emerging Markets (5.24 per cent), followed by Distressed Securities (4.05 per cent). The worst performing strategy was CTA Global (-0.80 per cent), followed by Short Selling (-0.25 per cent). The positive trend on the stock market benefited the equity-oriented strategies such as Long/Short Equity (1.75 per cent) and Event Driven (2.31 per cent).

Even if the recovery was significant for most of the strategies, it does not compensate yet the losses experienced since the beginning of the year. The year-to-date returns remained negative, except for three strategies, namely Convertible Arbitrage, Fixed-Income Arbitrage and Global Macro. Fixed Income Arbitrage Index is at its highest index level since EDHEC hedge fund indices' inception (December 1996), and Convertible Arbitrage and Global Macro approach this level.

Overall, the Funds of Funds strategy posted a strong positive return (1.82 per cent), still in line with the overall market recovery.