The 30% loss in Chinese equity values during three weeks in June, combined with uncertainties over the Greece referendum, saw losses for the hedge fund industry.
According to hedge fund information provider HFR, its Fund Weighted Composite Index declined by 1.3% in June – the worse monthly performance for hedge funds in two years.
However, the index still outperformed the S&P 500 by over 200 basis points year to date at the end of June.
Macro hedge fund strategies were the worst performers. A 2.4% loss was the worst performance for the sector since 2008.
Certain sector hedge funds performed well. Healthcare and technology funds gained 0.4% while short bias funds also achieved modest growth of 0.3%.
Kenneth J. Heinz, president of HFR, says that a combination of Chinese, European and Greek equity volatility as well as oil prices and the euro currency were the main causes of the hedge fund industry’s stutter last month.
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