WEST PALM BEACH, FL (HEDGECO.NET) – There was a broad sell-off in the hedge fund market in June across several asset classes which weighed down global equities and commodities such as oil, gold andcopper. Emerging markets and the energy sector epitomized this volatile swing, both ending the month down, yet it could have been much worse.
The HFN Hedge Fund Aggregate Average, an the equal weighted average of all single manager hedge funds, showed a decline of just 0.14%, with a year-to-date average up 5.92%. Funds concentrated in Asia showed the biggest declines. Funds with a European concentration also declined. There was a modest gain for US funds. Hedge funds posted small losses last month and lagged behind the broader stock market according to data released on Tuesday show.
“It looks like there was a bit of damage control after the previous month,†said Joshua Rosenberg, president of Chicago-based Hedge Fund Research (HFR), which tracks monthly performance numbers in the $1.3 trillion hedge fund industry.
“Many of the performance problems happened in late May, and so the flow numbers will be influenced largely by how and when investors decided to make their allocations for the quarter,†Rosenberg said.
In the first quarter of 2006, HFR reported that hedge funds took in roughly $24 billion in new money. Some of the month’s sluggishness has been chalked up to managers tuning into World Cup soccer matches played in Germany during the month.
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net
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