CTA hedge funds see worst losses since 2008

Falling profitsThe hedge fund industry posted an average loss of 0.75% in June – the first month that the industry has suffered negative performance this year.

The data from Preqin reflects similar data released last week by US hedge fund tracker HFR.

The causes given by both data providers were broadly similar, in that volatility around Chinese and Greek/Eurozone markets had an impact on both Asia and Europe-focused funds, which lost 1.82% and 1.06%, respectively.

Commodity trading advisers, or CTAs, which are a set of US-regulated hedge fund strategies that invest in futures and other derivatives, saw their worst monthly performance since 2008, with losses of 2.66%.

The only mainstream strategy that performed positively last month was relative value, which returned 0.17%. This section of the industry has only seen two months of negative performance in the previous 18.

Amy Benstead, head of hedge fund products, Preqin, says that although June was the first month of negative hedge fund performance in 2015, the industry has had a run of five consecutive positive returns since the beginning of the year, surpassing full-year 2014 performance in May.

©2015 funds europe