Hedge funds returns flat YTD
Hedge fund returns were flat to marginally negative in June (-0.50%
) asmost managers steered cautiously through volatile markets. The Juneyear-to-date returns of the Eurekahedge Hedge Fund Index now stand at-0.02%. In comparison, the MSCI World Index was down 3.56% in June,with the year-to-date measure falling to -10.88%.Below are the highlights for the month:
Hedge funds remained flat June year-to-date (-0.02%) whileoutperforming global markets by nearly 11%.
Strong launch activity was seen in 1H2010 – more than 500launches globally.
UCITS III hedge fund assets crossed US$100 billion during1H2010.
After experiencing sharp losses in May, hedge fund managers did well toprotect capital in June, which witnessed a very volatile marketenvironment. The month was marked by sharp trend reversals anderratic price movements across most asset classes as the VIX registeredan increase of 8%. Although hedge fund returns for most regions werenegative, managers characteristically outperformed their respectivemarket indices.Latin American hedge funds delivered the best returns, gaining 0.95%during the month and outperforming the MSCI Latin America Index,which returned -1.11% with 26.3% volatility. Latin American managersmostly profited from defensive positions in the equity sector to bring theEurekahedge Latin American Hedge Fund Index to 1.47% June year-to-date. Broader emerging markets hedge funds were also marginallypositive with gains of 0.15% while Asia ex-Japan funds returned 0.14%for the month.Index June 2010Est
2010Returns 2009Returns Eurekahedge Hedge Fund Index-0.50 -0.0219.63Eurekahedge Fund of Funds Index-0.66 -1.119.76Eurekahedge Long-Only AbsoluteReturn Fund Index-0.77 -0.7946.93