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Hedge Fund Industry Loses -4.16% in June; Down -9.93% Year to Date

Despite First Half Losses, Average Hedge Fund Outperforms S&P 500 by More Than 10% in 2022


The hedge fund industry posted a -4.16% return for June which made for its third consecutive down month according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.

Hedge funds did however fare markedly better than the S&P 500 Total Return Index which lost -8.25% in June.

For the year-to-date range, hedge funds are down -9.93% through June, again outperforming the S&P 500 Total Return Index which was down -19.96% over the same interval.

“June threw a tire and some oily rags into the raging dumpster fire that was H1 2022. At the close of the month, global equity shares had suffered their worst first half since we’ve been keeping records. For their part, Wall Street hasn’t taken such a shellacking in more than 52 years,” reflected Ben Crawford, Head of Research at BarclayHedge. “While conditions have not been quite so dire in Hedge Fund circles, retreating asset values have largely extracted their pound of flesh. Indeed, only Macro funds and Market Neutral funds were able to scrape together positive average returns for the first half of 2022.”

Only three subsectors managed to avoid red ink in June and those that did eked out only modest gains. These subsectors were led by the Equity Market Neutral Index, which returned 0.74% for the month, while the Emerging Markets Asian Equities Index advanced 0.36% and the Emerging Markets Asia Index was up 0.30%.

Among the subsectors losing ground in June, the Emerging Markets Latin American Equities Index and the Emerging Markets Latin America Index were hardest hit, hemorrhaging -11.72% and -8.47% respectively. They were followed by a large cluster of sectors that lost between -5% and -6% on the month. These included: The Equity Long Bias Index -5.99%; the Emerging Markets Global Equities Index -5.68%; the Balanced (Stocks & Bonds) Index -5.48%; the Emerging Markets Global Index -5.39%; and the Event Driven Index -5.04%.

The year-to-date picture was similarly grim. Only two subsectors have accumulated any forward progress so far in 2022; the Global Macro Index (+5.05%) and the Equity Market Neutral Index (+2.09%). Technology and Biotech-focused sectors are the furthest underwater thus far. The Technology Index has lost -21.01% followed closely by the Healthcare & Biotechnology Index which is down -20.49%. Broad emerging market indices have also struggled mightily with the Emerging Markets Global Equities Index down -15.26%; the Emerging Markets Global Index (-14.85%); and the Emerging Markets Index (-13.47%). The Equity Long Bias Index is underwater -15.07% and the Balanced (Stocks & Bonds) Index hasn’t fared much better with a -13.75% compounded return.

For a complete table of BarclayHedge Hedge Fund and Sub-Index results for June, as well as historical returns, click here.


About Backstop Solutions

Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.

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.



Maryling Yu