Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 2012. The Eurekahedge Hedge Fund Index was down 1.45%1 during the month as global markets reverted to ‘risk-off’ mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 3.10 %2 during the month.
Total assets under management (AUM) declined by US$21 billion during the month, bringing the size of the industry to US$1.89 trillion. Most of the negative impact on total assets came from negative performance in June as managers lost US$18.84 billion over the course of the month. The industry also witnessed net negative asset flows of US$2.12 billion during the month.
Figure 1: Summary monthly asset flow data since January 2011
Key highlights for June 2013:
- Hedge funds end their 7 month winning streak, down 1.45% in June
- Assets under management declined by US$21 billion in June and currently stand at US$1.89 trillion
- Launch activity picks up with more than 300 funds launched so far in the year
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1Based on 49.70% of funds which have reported June 2013 returns as at 11 July 2013
2 The MSCI AC World Index All Core – USD