Greenwich Mid-Month Update: Hedge Funds Lose -1.45% in June

July 12, 2013 - PRLog -- Greenwich, CT, USA, July 12, 2013 – Hedge funds faced a tough environment in June, losing an average of -1.45% during the month. This was the first negative month for the Greenwich Global Hedge Fund Index since October 2012. Distressed Securities continued its run as the best performing hedge fund strategy this year, gaining +0.51% in June on average and up +11.29% YTD. Equity markets were also down during during the month, as the S&P 500 Total Return Index dropped -1.34% while the MSCI World Index declined -2.61%. 31% of reporting funds posted positive performance for the month.

Global Index Strategy Highlights

US and global equity markets declined throughout the month of June as market participants anticipated the beginning of Fed tapering activities. Tighter monetary policies also appeared to be on the horizon in China, and expectations of slower Chinese growth dragged markets down further. Long-Short Equity funds struggled to hold onto gains in this environment and lost an average of -2.04% in June.
Market Neutral strategies generally reported the most success in hedging against June’s downbeat markets, losing only -0.26% during the month on average. In addition to Distressed Securities strategies, Equity Market Neutral managers also shined during the month, gaining an average of +0.36%.
Distressed Securities maintained their lead as the best performing hedge fund strategy for 2013, rising +0.51% in June to end the month up +11.29% year to date.
Geographically, no region was immune from June’s selloff. North American focused funds fared the best, losing a modest -0.51% on average. Developed Markets funds in general saw more moderate declines than Emerging Markets funds, declining -1.11% and -4.67% respectively.
Emerging Markets funds faced significant challenges in June. The negative environment in China translated to an average drop of -5.80% for funds focused on Emerging Asia. In Brazil, widespread protests added to political uncertainty and rattled markets. Latin American funds lost an average of -6.69%, with losses concentrated in Brazilian focused funds.

Strategy Group Summary          June       YTD
         2013    Return

Greenwich Global Hedge Fund Index  -1.45% 3.22%
Market Neutral Group          -0.26%  4.63%
Equity Market Neutral  0.36%  2.22%
Event-Driven   -0.15%  6.96%
    Distressed Securities  0.51%   11.29%
    Merger Arbitrage   -0.09%   2.20%
    Diversified Event-Driven  -0.47%  6.04%
Arbitrage  -1.08%   3.05%
    Convertible Arbitrage   -0.28%   7.49%
    Fixed Income Arbitrage  -1.70%   2.42%
    Other Arbitrage   0.45%   2.43%
Long-Short Equity Group  -2.03%  4.95%
Growth  -2.48%  5.06%
Opportunistic  -1.48%  3.30%
Short-Biased  1.16%   -10.08%
Value  -2.12%  6.21%
Directional Trading Group -1.15%   -0.31%
Futures  -1.15%  -1.44%
Macro   -1.16%   2.40%
Specialty Strategies Group   -1.85%   1.77%
Long-Short Credit  -1.84%  1.63%
Multi-Strategy  -1.86%  1.84%
Greenwich Regional Hedge Fund Indices  June    YTD
Developed Markets
Composite   -1.11%   4.18%
Global  -1.49%  1.75%
Asia  -1.82%  10.38%
Europe  -0.89%  3.64%
North America  -0.55%  5.65%
Emerging Markets
Composite   -4.67%    -2.64%
Emerging Markets Global   -3.82%  -0.57%
Emerging Markets Asia  -5.80%   0.43%
Emerging Markets Europe  -2.40%   -5.43%
Emerging Markets Latin America/SA  -6.69%  -8.02%

The GGHFI is one of the oldest benchmarks of the hedge fund universe. Final Strategy and Regional index results for June will be available in early August, once additional funds have submitted returns.  Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com.

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Greenwich Alternative Investments, LLC (and its affiliates) manages one of the world’s largest hedge fund databases and is among the oldest providers of hedge fund indices, asset management services, and research to institutional investors worldwide.

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