![\"\"](\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/07\/green_tech.jpg\" "\\"June\\"")
<\/a>\u201cThe rebound from the worst recession since the 1930\u2019s faces added risks from Europe\u2019s debt crisis causing managers to remain intently focused on Europe ,\u201d commented Charles Gradante , Co-Founder of Hennessee Group . \u201cIncreased bank funding stress and declining liquidity have been the main catalyst for the recent correction in global risk assets. Managers question the ability of some EU governments to bail out their banks when they are having difficulty funding sovereign debt, as credit default swaps for sovereign debt have widened at the same pace as credit default swaps for bank debt.\u201d<\/p>\n\u201cAs in May, hedge funds continued to decline, amid a broad based reduction of risk and significant volatility. Hedge fund risk management performed well, with hedge funds declining only one-fourth of traditional benchmarks,\u201d said Lee Hennessee , Managing Principal of Hennessee Group . \u201cManagers remain cautiously positioned and expect volatility to continue. While many feel that the market could rally sharply to the upside on positive news, most remain unwilling to assume greater levels of risk in the current environment until they see stabilization.<\/p>\n
Managers have consolidated core risk positions and added protection during the sell off, but remain long biased, as is typical for the strategy. While the pace of U.S. corporate defaults has slowed dramatically in 2010, managers are optimistic on the opportunity set for new distressed opportunities over the next five years. Managers report that many companies that have refinanced debt maturities have only delayed their balance sheet problems.<\/p>\n
\u201cThe equity and bond market in June signaled a \u2018 Japan like future\u2019 for the U.S. economy, characterized by anemic GDP growth, large deficits, and benign inflation,\u201d Gradante said. \u201cCollectively, most hedge fund managers see better demographics for the U.S. relative to Japan , resulting in consumer demand prospects significantly better than Japan. The real debate is over when this pent-up demand will be unleashed.\u201d<\/p>\n
European and emerging markets held up relatively well in June, compared to the U.S. markets; however, they are down significantly more on a year-to-date basis. Hedge funds benefited from conservative portfolios, as the Hennessee International Index fell -0.80% (-0.02% YTD).<\/p>\n
Risk-averse investors continued to shift into precious metals, benefiting hedge funds, as a key macro theme has been long gold, which hit a record high in June.<\/p>\n
Editing by Alex Akesson New York, (HedgeCo.net) – The Hennessee Hedge Fund Index declined \u20131.35% in June (+0.20% YTD), while the S&P 500 decreased \u20135.39% (-7.57% YTD), the Dow Jones Industrial Average declined -3.58% (-6.27%), and the NASDAQ Composite Index fell -6.55% (-7.05% YTD). […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[919,3],"tags":[],"class_list":["post-16637","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/16637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=16637"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/16637\/revisions"}],"predecessor-version":[{"id":16640,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/16637\/revisions\/16640"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=16637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=16637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=16637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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