Introduction
Hedge funds were down for the fourth consecutive month in June, as economies in Europe announced recessions and frequent shifts in risk sentiment made it a difficult environment for traders. The composite Eurekahedge Hedge Fund Index registered a marginal loss of 0.14%1 while the MSCI World and the S&P Goldman Sachs Commodity Indices were up 3.65% and 1.20% respectively. Hedge funds recorded a decline of US$8.2 billion as negative performance and client redemptions led to the fall in assets under management. Total industry assets are still higher by 1.53% year-to-date and remain above the US$1.73 trillion mark. Japanese managers recorded the highest returns among regional mandates while relative value and fixed income strategies outperformed peers in June.
Highlights of hedge fund performance and asset flows for the month are as follows:
| June 2012 | US$ billion |
|---|---|
| Allocation (Inflows) | 5.43 |
| Redemption (Outflows) | -7.04 |
| Net Asset Flows | -1.61 |
| Positive Performance (Growth) | 18.49 |
| Negative Performance (Decline) | -25.1 |
| Total | -6.62 |
| Overall Total | -8.23 |
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Footnote
1 Based on 50.83% of funds which have reported June-2012 returns as at 13-July-2012
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