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Hedge Fund Performance Update: Q2 2015

In this extract from the Preqin Quarterly Update: Hedge Funds, Q2 2015, we take a look at recent industry performance using the latest data available.

Q2 2015 was a volatile quarter for hedge funds but still broadly positive with hedge funds (+1.45 per cent) outperforming the S&P 500 (-0.03 per cent) for the second consecutive quarter. CTAs, however, had a difficult quarter, returning -3.92 per cent for Q2 2015 as many trends reversed during the quarter along with the ongoing negotiations regarding Greek debt and extraordinary volatility in the Chinese public markets, leading to many CTAs giving back much of their strong performance generated through Q1 2015.

Equity strategies produced the highest returns of Q2 2015 (+2.27 per cent) despite being in the red during June (-0.90 per cent) with the quarterly returns being driven largely by returns generated during April (+2.10 per cent) and May (+1.06 per cent). Funds employing a relative value strategy were the only fund strategy generating positive average returns during June returning 0.17 per cent for the month and 1.88 per cent for the quarter. 

Fig 3 shows that funds focused on the Asia-Pacific region have generated the highest returns through the quarter returning 5.14 per cent. The first two months of the quarter, saw hedge funds focusing on the region capitalize on the surge in Chinese equity markets following the ongoing financial reforms implemented by the Chinese government. After a peak in mid-June, Chinese equities experienced large falls, with Asia-Pacific-focused hedge funds experiencing a correspondingly difficult month returning -1.82 per cent. However, with the Shanghai stock index falling over 16 per cent and the Hang-Seng Index falling almost 5 per cent during June, hedge fund managers in the region were able to limit the losses to their investors during the final month of the quarter.

This is an extract from the Preqin Quarterly Update: Hedge Funds, Q2 2015Click here to read the full report or visit our Research Center to view our other Quarterly Updates, covering Private Equity, Real Estate, Infrastructure and Private Debt.

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