Hedge funds’ monthly results returned to the black in June. For the month, the hedge fund industry posted a 1.94% return, a turnaround from May’s 1.66% decline, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. By comparison, the S&P 500 Total Return Index was up 7.07% in June.
With positive returns in five of the past six months, hedge funds have gained 7.06% in the first half of the year, its best start since 2009 when the Index gained 10.93% in H1.
“Declining interest rates in the US and Europe fueled June’s rally in share prices and provided a strong tailwind for hedge funds,” said Sol Waksman, President of BarclayHedge.
All hedge fund sectors but one – the Volatility Trading Index, down 0.38% — posted gains in June. Leading the way were the Emerging Markets Latin America Index, up 5.41% for the month, the Emerging Markets Latin American Equities Index, up 4.14% and the Technology Index with a 3.81% return.
“In June, a weakening U.S. dollar worked to the benefit of many emerging market firms that have dollar-denominated debt,” added Waksman.
Several sectors posted double-digit year-to-date gains through June, led by the Healthcare & Biotechnology Index with a 12.73% gain. Other double-digit gainers on the year included the Emerging Markets Eastern European Equities Index, up 12.59%, the Emerging Markets Eastern Europe Index with a 12.10% year-to-date return and the Technology Index, up 11.71% year-to-date.
Only two sectors were in the red for the year-to-date. The Volatility Trading Index was down 1.46% through June while the Equity Market Neutral Index was down 1.09%.
For a complete table of BarclayHedge Hedge Fund and Sub-Index results for June, as well as historical returns, click here.
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BarclayHedge, a division of Backstop, currently maintains data on more than 6,900 hedge funds, funds of funds and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.
BarclayHedge, a division of Backstop Solutions Group