Hedge Fund Reader : Losses for Hedge Funds in June

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July 10, 2006

Losses for Hedge Funds in June

Hedge funds suffered significant losses in June, according to the data released by Barclay Group. The Barclay Hedge Fund Index shows that the average hedge fund slipped 0.30 last month. The biggest concern is that hedge funds have been witnessing losses for two consecutive months. Managers, who are specialized in emerging markets, have pulled down the index with the month's biggest loss. Interestingly, short sellers had gains of nearly 1 percent. The Barclay data has clearly shown how managers in the $1.3 trillion hedge fund industry fared in June. Hedge funds distinguish themselves from mutual funds by using trading techniques. They include selling stocks short and using borrowed money that is off-limits at traditional funds.

According to Reuters -

The Barclay Group also puts together data on so-called managed futures where traders rely on computer programs to make bets on commodities, interest rates and currencies. The Barclay CTA Index showed a decline of 0.62 percent in June after a decline of 0.73 percent in May.

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July 10, 2006 in Research | Permalink