Halfway through 2018, the hedge fund industry is producing very mixed results. Just over half of reporting strategies are positive for the year, according to the just-released June 2018 eVestment Hedge Fund Performance Report. Those funds that are positive are up an average of +5.3%, while those in the red are down an average of -5.3%.
Overall industry returns were just slightly negative at -0.51% in June, while 2Q 2018 returns were positive at +0.37% and YTD 2018 returns stand at +0.16%.
Other interesting points from the new report include:
- Among primary markets Broad Capital Structure funds are among the strongest performers, returning +0.45% in June, +2.25% for the second quarter and +1.94% for the first half of the year.
- Among primary strategies, Distressed and Origination & Financing funds are performing well. Distressed funds returned +1.53% in June, +3.50% and +3.34% YTD. Origination and Financing funds returned +1.02% in June, 2.48% in 2Q and +3.83% YTD.
- Commodities funds are among the biggest losers so far in 2018, returning -2.70% in June and -1.30% YTD.
- A strong dollar and developing trade wars have been hurting emerging markets funds. In June, China-focused funds fell most, returning -4.69%. June China fund losses were nearly rivaled by losses at funds focused on India and Brazil, which also saw negative returns. However, India focused funds, at -12.28% for the year, are seeing the largest losses so far in 2018
To download a full copy of the report, please click here.