Hedge Fund Returns Swing Back to Positive in June

10 Jul

Hedge Fund Returns Swing Back to Positive in June

After dipping into the red in May, the global hedge fund industry returned to positive territory in June with an aggregate industry performance of +2.42%, according to the latest eVestment hedge fund performance data covering the month of June. This brings year-to-date (YTD) average gains to +7.16%, building on the positive performance the industry experienced from January to April of this year.

All major strategies and primary markets were positive in June. Among primary strategies, Event Driven – Activist funds had the strongest performance in June, returning an average of +3.97%. These funds’ YTD performance is also among the strongest, at +8.96%. Long/Short Equity funds had a strong June as well, returning +3.17%, and lead in YTD returns among primary strategies at +10.00%. Long/Short Equity managers have benefitted from the global equity market rally, and many funds within the category were among the most-viewed on eVestment’s platform in June.

Other interesting highlights from the latest hedge fund performance data include:

  • Among primary markets, funds focused on Broad Financial Derivatives had the strongest performance in June, returning +3.42% for the month, bringing YTD performance to +6.19%
  • Equity funds are also performed well in June and YTD, returning +2.98% for the month and +9.01% so far this year.
  • Among the sea of green in June, other notably positive average performances were turned in by Managed Futures funds (+3.77% in June), Quantitative Directional Equity funds (+3.08% in June) and Macro funds (+2.33% in June).
  • Russia and China focused funds continue their string of strong performances, returning an average of +5.31% and +4.77% respectively in June. Russia and China focused funds are also outshining the rest of the industry YTD, returning an average of +16.97% and +15.80% respectively. Both Russia and China funds are coming off strongly negative performances in 2018.
  • India-focused funds continue to have challenges, returning -0.80% in June and eking out YTD returns of only +2.16%. This is, however, an improvement from these funds’ disastrous -16.23% average returns in 2018.

The full June 2019 eVestment hedge fund performance data is below. To review and download all eVestment research reports, please click here.

 

Industry Benchmarks June Q2 2019 YTD 2019 2018 2017
Hedge Fund Aggregate 2.42% 1.95% 7.16% -5.10% 8.93%
50% MSCI World/50% Citi WGBI 4.46% 4.46% 11.26% -4.60% 14.75%
S&P 500 7.05% 7.05% 18.54% -4.38% 21.83%
Primary Markets June Q2 2019 YTD 2019 2018 2017
Broad Financial Derivatives 3.42% 3.97% 6.19% -5.42% 2.38%
Equity 2.98% 1.69% 9.01% -7.55% 13.47%
Broad Multi-Market 2.45% 2.91% 5.88% -3.84% 4.47%
Commodities 1.96% 0.70% 3.52% -6.00% 0.46%
Broad Capital Structure 1.17% 0.97% 6.11% -3.42% 8.88%
Fixed Income/Credit 0.87% 1.57% 4.41% -0.03% 5.98%
Volatility/Options Strategies 0.44% 0.97% 3.30% -2.47% 4.81%
FX/Currency 0.38% 1.56% 1.84% 0.76% -3.46%
Primary Strategy June Q2 2019 YTD 2019 2018 2017
Event Driven – Activist 3.97% 2.06% 8.96% -10.29% 10.89%
Managed Futures 3.77% 4.34% 7.00% -6.04% 2.75%
Long/Short Equity 3.17% 2.02% 10.00% -7.06% 12.16%
Quantitative Directional Equity 3.08% 3.10% 7.06% -4.78% 10.52%
Macro 2.33% 2.71% 4.91% -2.94% 4.02%
Convertible Arbitrage 1.60% 1.45% 6.37% -2.22% 5.71%
Multi-Strategy 1.08% 0.92% 4.44% -3.27% 6.84%
Distressed 0.89% 2.09% 5.35% -0.65% 6.52%
Origination & Financing 0.75% 1.51% 3.82% 4.99% 6.69%
Directional Credit 0.71% 1.62% 4.39% 0.66% 5.24%
Market Neutral Equity 0.61% -0.16% 0.74% -3.28% 3.58%
Event Driven 0.56% 0.60% 4.45% -2.02% 7.39%
Relative Value Credit 0.48% 1.49% 4.26% -1.00% 5.48%
Multi-Strategy Credit 0.37% 1.10% 3.55% 0.11% 5.64%
Prominent Universes by Size June Q2 2019 YTD 2019 2018 2017
Ten Largest Hedge Funds 1.13% 1.36% 4.19% 1.36% 5.91%
Ten Largest Long/Short Equity 0.85% 0.64% 3.99% -3.88% 8.62%
Ten Largest Macro 2.86% 3.12% 5.10% 2.13% 2.24%
Ten Largest Managed Futures 2.32% 4.26% 8.07% -7.44% 3.89%
Ten Largest Multi-Strategy 0.64% -0.11% 2.74% -2.57% 6.40%
Economic Development June Q2 2019 YTD 2019 2018 2017
Emerging Markets 3.02% 1.65% 8.92% -10.84% 19.55%
Country Exposure June Q2 2019 YTD 2019 2018 2017
Russia 5.31% 8.49% 16.97% -13.20% 13.16%
China 4.77% -1.60% 15.80% -16.63% 34.76%
Brazil 3.79% 5.06% 8.35% -2.26% 15.13%
Asia ex-Japan 2.28% -1.19% 5.46% -11.33% 21.76%
Japan 1.55% 1.03% 3.12% -8.00% 13.76%
India -0.80% -1.19% 2.16% -16.23% 32.87%