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Managed futures, commodity hedge funds among top performers in positive month for hedge funds

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The global hedge fund industry returned an average of +0.86 per cent in June and finished up the second quarter at +2.09 per cent, according to the June/2Q 2016 eVestment Hedge Fund Performance Report. 

The overall positive returns for hedge funds and very strong returns in some specific segments highlighted the value hedge funds can offer investors during volatile market conditions.
And while the impacts on hedge funds of the late June BREXIT vote aren’t entirely clear yet, the report does note some challenges as a result of the uncertainty in European and world markets the late June referendum and its surprising (to some) result created.
According to the report, which was authored by eVestment Vice President and Global Head of Research Peter Laurelli, performance from both European-focused equity and credit hedge funds was impacted by the BREXIT vote in June. For instance, funds operating in Europe’s equity markets fell an average of -2.63 per cent during the month, leaving them -2.19 per cent in Q2 and -3.28 per cent in 2016.

Average gains for managed futures funds in June totaled +3.88 per cent for all managed futures funds and +4.57 per cent for >USD1 billion managers, the universes’ largest monthly increases since November 2014.

Commodity hedge funds continued to produce strong results meanwhile, returning +2.72 per cent in June, +4.93 per cent for the quarter and +6.36 per cent year to date.

Multi-strategy hedge funds produced mixed returns in June. Only 50 per cent of managers were able to produce positive returns in last month and average returns from larger managers were below those of smaller funds, -0.39 per cent vs. +0.97 per cent, respectively.

Hedge funds focused on energy equities continued to post strong returns in June, further separating themselves from their other sector-focused industry peers. Returns of +1.74 per cent in June put the universe +10.29 per cent in Q2 2016 and +12.03 per cent in 2016

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