Hedge Funds Posted Their First Monthly Loss In 2015 Of 1.19%

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Hedge Funds Posted Their First Monthly Loss In 2015 Of 1.19%

Key highlights for June 2015:

  • Hedge fund assets under management have increased by US$93 billion in the first six months of 2015, with roughly US$52 billion coming from performance driven gains and US$41 billion from new investor allocations.
  • Despite losses of 1.13% in June, European mandates continue to see resurgence in investor allocations. European hedge funds have recorded US$12.5 billion in new investor allocations for Q2 2015 following net outflows of US$17.1 billion over the three preceding quarters.
  • CTA/managed futures funds have grown their asset base by 10.86% in 2015 largely on the back of strong capital inflows totaling US$20 billion – its highest 1H investor allocation since 2008.
  • Asia ex-Japan mandated hedge funds lost 1.58% in June and recorded US$1 billion worth of performance-based losses in the worst month for regional managers since the taper tantrum of 2013.
  • North American managers lead in terms of year-to-date net investor inflows recording US$24.9 billion in new allocations, about two-thirds the level seen for the same period in 1H 2014.

After five months of consecutive gains, hedge funds posted their first monthly loss in 2015 of 1.19%1 in June, though comfortably outperforming underlying markets as the MSCI World Index2 fell 2.88% during the same month. Asia ex-Japan mandated hedge funds suffered their worst month of losses since June 2013, down 1.58% as Chinese equity markets entered into correction during the month. The Shenzhen and Shanghai Composite Indices declined by 11.78% and 7.25% during the month respectively. Talks between Greece and its creditors further overshadowed markets with European managers also posting losses of 1.13% during the month. Hedge fund managers with exposure to Europe suffered steep losses, due to the sell-off in European equity markets as the escalating Greek debt crisis increased market uncertainty. While Asia ex-Japan and Europe mandated funds have languished this month, Japanese and Latin American managers emerged as the top performer for the month across all regional mandates, up 0.39% and 0.29% respectively despite meek global equity performance and volatile market environment.

May and June 2015 hedge funds returns across regions

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