Research

Hedge Fund Performance Commentary

Introduction

Hedge funds recorded negative returns in June ending their seven month winning run, as global markets witnessed broad based declines during the month. The Eurekahedge Hedge Fund Index was down 1.45%1 in June, outperforming most major underlying markets as the MSCI AC World Index2 declined 3.10%.

 

June witnessed some heightened risk aversion in global markets amid slowing economic growth in China and the US Federal Reserve’s indications that it might scale back its bond buying program. Most major equity markets ended the month in negative territory although market fears regarding a disruption to global economic recovery were somewhat allayed near the month-end as the Fed clarified that any tightening of the monetary policy would be hinged upon solid job creation in the US labour market.

June 2013 and May 2013 returns across regions

 

The S&P 500 index was down 1.50% in June while the FTSE100 and Hang Seng index were down 5.58% and 7.10% respectively. Asia ex-Japan markets were the worst hit as lacklustre manufacturing data from China continued the flow of dreary macroeconomic numbers from China. Japanese stocks proved to be more resilient compared to their counterparts

 

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Footnote

1Based on 49.70% of funds which have reported June 2013 returns as at 11 July 2013

2 MSCI AC World All Core (USD)

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