Halfway through 2018, and hedge funds are producing very mixed results with just over half of reporting strategies positive for the year, according to the June 2018 eVestment Hedge Fund Performance Report.
Those funds that are positive are up an average of 5.3 per cent, while those in the red are down an average of 5.3 per cent. Overall industry returns were just slightly negative at -0.51 per cent in June, while 2Q 2018 returns were positive at +0.37 per cent and YTD 2018 returns stand at +0.16 per cent.
Among primary markets Broad Capital Structure funds are among the strongest performers, returning +0.45 per cent in June, +2.25 per cent for the second quarter and +1.94 per cent for the first half of the year. Among primary strategies, Distressed and Origination & Financing funds are performing well.
Distressed funds returned +1.53 per cent in June, +3.50 per cent and +3.34 per cent YTD. Origination and Financing funds returned +1.02 per cent in June, 2.48 per cent in 2Q and +3.83 per cent YTD. Commodities funds are among the biggest losers so far in 2018, returning -2.70 per cent in June and -1.30 per cent YTD.
A strong dollar and developing trade wars have been hurting emerging markets funds. In June, China-focused funds fell most, returning -4.69 per cent. June China fund losses were nearly rivalled by losses at funds focused on India and Brazil, which also saw negative returns. However, India focused funds, at -12.28 per cent for the year, are seeing the largest losses so far in 2018.
