WEST PALM BEACH, FL (www.hedgeco.net) – The Convertible Arbitrage Hedge Fund Index reversed losses following the past two months of declines according to new data just released by Barclays/GHS HedgeFund Index. The new data shows that hedge funds made modest gains in June, Barclays/GHS Hedge Fund Index recorded gains of 1.8 percent for the month. Such gains come in time to refute hedge fundcritics saying that hedge funds may be in the negative column in 2005.

In May, most hedge funds recorded small losses for the month, and the first quarter was also tough for hedge funds. But hedge fund industry analysts believe that hedge funds may still achieve positive numbers in 2005. Convertible Arbitrage Managers just recovering from the recent losses following the downgrading of Ford Motors and General Motor�s bond ratings drove the gains in June. The Barclays Convertible Arbitrage strategy gained 1.68 percent in June.

Kevin Campbell, vice president for research at Van said, “The anticipated sell-off in convertible bonds to fund investor redemptions at quarter-end did not materialize.� He added, �This combined with strong new issuance in the convertible market and attractive valuations, provided managers in this strategy with investment opportunities.� Convertible Arbitrage Strategy lost nearly 7 percent during the first half of the year.

Other Hedge Fund strategies such as Global Macro rose nearly 3 percent in June while hedge funds investing in European Equities gained 2.61 percent according to Barclays/GHS Hedge fund index. The strategies investing in stocks, bonds, and currencies did better in June as well.

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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