Fixed income hedge funds most successful
FIXED income hedge funds have been the most successful in the first half, according to a new index.
The HFRI Fund Weighted Composite Index, a broad measure of hedge fund performance, shows a six-month loss of 0.18 per cent at the end of June, following a 0.81 per cent fall in June.
Hedge funds focussed on corporate debt gained 4.76 per cent for the half year, while the biggest loser was in energy and basic materials, down 4.81 per cent.
Fixed-income asset-backed strategies were the best performers, up 6.36 per cent.
“Volatility increased significantly with concerns about sovereign credit risk, currency policy adjustment, economic and energy market impact of the (BP) environmental disaster and concerns about slowing growth in both developed and emerging economies,” HFR, a research firm, said.
“(This contributed) to declines in global equity markets, a powerful late-quarter rally in US Treasury bonds and volatile directional moves in currency and commodity markets.”