Hedge funds down for a fourth consecutive month

Hedge funds face tough month in June amid trend reversals and shifts in risk sentiment

Hedge funds witnessed a flat to slightly negative performance in June amid reversals in market trends. The Eurekahedge Hedge Fund Index was down 0.19% during the month, bringing its June year-to-date performance to 1.33%. In comparison the MSCI World Index was up 3.65%.

Key highlights for June 2012:

• Hedge funds posted negative returns for the fourth consecutive month in June, the longest losing streak since 2008.
• North American fixed income and relative value hedge funds gained 3.71% and 3.40% respectively in June.
• Assets in macro hedge funds at historical high levels, cross US$140 billion for the first time.
• The Mizuho-Eurekahedge Long Short Equities Index was up 1.10% in June, showing that larger funds outperformed their peers.
• Hedge funds down 2.4% in 2Q-2012, making it the worst second quarter on record for the industry.

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.