NASHVILLE, Tenn.–(BUSINESS WIRE)–July 14, 2003–The Van Global Hedge Fund Index gained 1.2% net of fees in June, according to Van Hedge Fund Advisors International, Inc. (VAN), a leading hedge fundadvisory firm. The Index, which is one of the hedge fund industry’s oldest and most widely followed benchmarks, rose 8.0% net for the first half of 2003. VAN reports that the latest June figure isbased on over 800 reporting hedge funds from around the world.<\/p>\n
VAN calculates the Index both with and without funds of funds (hedge funds that reinvest capital into other hedge funds). For the month of June, the Index returned the same either way. For the year to date, the Van Global Hedge Fund Index excluding funds of funds fared slightly better, earning 8.4% net.<\/p>\n
The Van U.S. Hedge Fund Index, including only hedge funds domiciled in the United States, returned 1.2% net in June, increasing its year-to-date total to 8.7% net. The Van Offshore Hedge Fund Index, based on only non-U.S. hedge funds, rose 1.3% for the month, generating a 7.5% net gain for the first half of the year.<\/p>\n
The S&P 500, in comparison, gained 1.3% last month, while the Average Taxable Bond Mutual Fund edged up 0.3%.<\/p>\n
“Hedge funds continued their winning streak in June and, despite their hedged nature and exposure to other asset classes, generally kept pace with the resurgent equity markets,” stated George Van, Chairman of VAN. “Gains were more modest across the board in June than in April or May but continued to be widespread. Once again, Short Selling was the only strategy to post a loss in our Global Index and about three-quarters of funds reported a net gain for the month. Overall, hedge funds continue to be a good place to be for sophisticated investors.”<\/p>\n
Emerging Markets hedge funds again produced some of the best returns, averaging a 3.3% net gain in June, the best among the Global Index’s fourteen strategies. The Emerging Markets index also leads for the year to date at 15.1% net. Equity-oriented strategies, which account for the majority of the world’s hedge funds, are also performing well this year as stocks attempt to pull out of a three-year bear market. Aggressive Growth and Value netted average returns of 2.2% and 1.6% in the Global Index for June, respectively, increasing their year-to-date net gains to 13.2% and 9.9%.<\/p>\n
Distressed Securities and Special Situations, both strategies that target securities subject to unusual corporate events, also continued to do well. Those funds benefited from an increase in mergers and acquisitions as well as a steady flow of bankruptcy filings. The Distressed Securities index earned 2.6% net in June and has returned 13.7% net year-to-date. Special Situations rose 2.2% for the month and 9.5% year-to-date.<\/p>\n
The Van Global Hedge Fund Index climbed to a value of 9,769.80 in June. The Index began with a value of 1,000 in January 1988. The Index has generated a net compound annualized return of 15.8% over its 15 1\/2 year history. Past performance of the Van Global Hedge Fund Index may be viewed at www.hedgefund.com.<\/p>\n
Final June returns for the Van Hedge Fund Indices will be calculated at the end of July, based on a substantially larger sample of hedge fund returns. Those results will supersede the returns reported herein, should they differ. Final June returns will be posted at www.hedgefund.com.<\/p>\n
As currently calculated, June and year-to-date 2003 hedge fund returns by strategy were as follows: <pre><br> Global U.S. Offshore<br> ———— ———— ————<br> June YTD June YTD June YTD<br> 2003 2003 2003 2003 2003 2003<br>——————————- —– —— —– —— —– ——<br>Aggressive Growth 2.2% 13.2% 2.4% 13.8% 1.7% 12.1%<br>——————————- —– —— —– —— —– ——<br>Distressed Securities 2.6% 13.7% 2.3% 12.4% 2.8% 14.7%<br>——————————- —– —— —– —— —– ——<br>Emerging Markets 3.3% 15.1% 2.9% 13.0% 3.4% 15.7%<br>——————————- —– —— —– —— —– ——<br>Income 0.1% 6.0% -0.1% 6.3% 0.5% 5.7%<br>——————————- —– —— —– —— —– ——<br>Macro 0.6% 7.2% -0.6% 7.8% 1.2% 6.7%<br>——————————- —– —— —– —— —– ——<br>Market Neutral – Arbitrage 0.2% 5.2% 0.0% 5.5% 0.3% 4.9%<br>——————————- —– —— —– —— —– ——<br>Market Neutral -<br>Securities Hedging 0.6% 2.9% 0.7% 2.7% 0.5% 2.9%<br>——————————- —– —— —– —— —– ——<br>Market Timing 0.6% 3.2% 0.9% 4.3% 0.0% 1.8%<br>——————————- —– —— —– —— —– ——<br>Opportunistic 1.6% 10.2% 1.6% 11.4% 1.6% 9.4%<br>——————————- —– —— —– —— —– ——<br>Several Strategies 0.7% 9.7% 0.5% 12.4% N\/A N\/A<br>——————————- —– —— —– —— —– ——<br>Short Selling -1.8% -11.8% -1.7% -10.8% -2.0% -13.3%<br>——————————- —– —— —– —— —– ——<br>Special Situations 2.2% 9.5% 2.2% 9.7% 2.3% 9.6%<br>——————————- —– —— —– —— —– ——<br>Value 1.6% 9.9% 1.6% 10.6% 1.7% 8.6%<br>——————————- —– —— —– —— —– ——<br>Van Hedge Fund Index<br>(ex Funds of Funds) 1.2% 8.4% 1.2% 8.9% 1.3% 7.9%<br>——————————- —– —— —– —— —– ——<br>Funds of Funds 0.9% 5.6% 1.2% 6.4% 0.7% 4.9%<br>——————————- —– —— —– —— —– ——<br>Van Hedge Fund Index 1.2% 8.0% 1.2% 8.7% 1.3% 7.5%<br>——————————- —– —— —– —— —– ——<br><\/pre><\/p>\n
Van Hedge Fund Advisors International, Inc. (“VAN”) is a global hedge fund advisory firm which constructs hedge fund portfolios for international institutions and wealthy investors. VAN bases its work on its pioneering research on hedge funds begun in the early 1990s and by drawing on a hedge fund database which it believes to be the world’s largest.<\/p>\n
The Company’s hedge fund index information is based on information received (and not audited or independently verified) from the hedge funds in an affiliate’s databases and may not be representative of all hedge funds. Hedge fund returns are net of fees and performance allocations. The timing of the deduction of such fees and performance allocations may affect the reported performance. The June Index as reported herein was created using a sample of 820 funds. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance. Average Equity Mutual Fund and Average Taxable Bond Mutual Fund statistics are derived from Morningstar data.<\/p>\n","protected":false},"excerpt":{"rendered":"
NASHVILLE, Tenn.–(BUSINESS WIRE)–July 14, 2003–The Van Global Hedge Fund Index gained 1.2% net of fees in June, according to Van Hedge Fund Advisors International, Inc. (VAN), a leading hedge fundadvisory firm. The Index, which is one of the hedge fund […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-452","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/452","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=452"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/452\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}