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Click here to download the eVestment June Hedge Fund Performance Report. The eVestment June Hedge Fund Performance Report highlights hedge fund performance trends for June, the second quarter of 2014 and the first half of this year.
Some key points from the report, according to Peter Laurelli, eVestment vice president and head of research, are:
- Outperformance from activist hedge funds were a major reason event driven funds were the best performing hedge fund strategy in June, Q2 and H1 2014.
- The industry as a whole has benefited from the persistent low-volatility, rising-equity, flat-rate, demand-for-yield environment. However exposure level data indicates short exposure ticked higher for the second consecutive month while long exposure has been in steady decline since mid-2013. Gross exposure, an indication of how comfortable managers are in general with market exposure, is near its lowest level since the end of 2011.
- Distressed funds have been major beneficiaries in this demand-for-yield environment and are producing returns in-line with 2013, when they gained more than 14.5%.
- Long/short equity strategies posted positive returns in June, Q2 and H1, but are generally lagging other major segments of the industry in 2014.
- Macro strategies were positive for the second consecutive month, but H1 returns put them at the bottom of the industry in terms of major strategies, below managed futures funds, which also enjoyed a positive Q2.
