Hedge funds were down 1.22%1in June, ending the 1H 2011 with marginal returns of 0.33%. The month was marked by trend reversals in the markets and changes in investor risk appetite, which was the prevalent theme throughout 2Q 2011. However, hedge funds outperformed the underlying markets – the MSCI World Index2 saw declines of 1.88% for the month.
Market sentiment was bearish initially in the month amid concerns about a slowdown in the US economy and the European sovereign debt crisis. However the trend reversed in the latter half of the month, as these concerns faded partially due to developments in the Euro Zone and also through positive economic data from China.
