07/17/2006
Fund index falls in June.
The Credit Suisse/Tremont Hedge Fund Index was down 0.11 percent in June, as increased volatility prompted investors to reduce risk across the board.
Long-short equity managers were affected by long exposure to equity markets, resulting in a negative performance of 1.01 percent. Dedicated short-bias managers, however, benefited from the negative market trends to end the month up by more than 5 percent.
Returns proved mixed for fixed income managers. Those following market-neutral strategies profited from June’s volatility, but funds following a directional strategy approach suffered.
The Investable Hedge Fund Index, meanwhile, was down an estimated 0.21 percent. This follows confirmation that performance for May was down 0.8 percent, worse than original estimates.
Year to date, the Hedge Fund Index has returned 6.29 percent. The Investable Index is up 4.62 percent.
The Credit Suisse/Tremont Hedge Fund Index is the largest hedge fund index, with more than $400 billion in assets managed by 420 funds.
—Tim Chan