NEW YORK (HedgeWorld.com)–Hedge funds reported lukewarm preliminary June performance of 0.5%, according to the MSCI Hedge Fund Composite Index.
Returns were dragged down by global macro and futures funds, which together with other directional funds declined 2%, according to the MSCI Directional Trading Index.
Year-to-date, though, hedge funds still look good with returns of 8%, according to the MSCI Composite. And MSCI’s Directional Trading Index still is up 8.3% for the year relying on revised performance for May, which fell to 5.1% from the preliminary result of 5.2% Previous HedgeWorld Story.
In June, the big performance winners were the MSCI Specialist Credit Index, which has distressed funds, long/short credit funds, and private placement funds, and the MSCI Multi-Process category, which contains event-driven funds. Both of those categories returned 1.7% in June, according to preliminary data.
Year-to-date, the MSCI Specialist Credit Index returned 8.4%, using May returns that were revised slightly to 4.2% from 4.3%. The MSCI Multi-Process Index returned 10.3% year-to-date through June, using a May performance number that was revised upward to 3.7% from 3.5%.
The MSCI Security Selection Index, which contains long/short equity, market neutral, and short funds did well in June with a preliminary return of 1.4%, bringing its year-to-date return to 8.4% after a revision of its preliminary May return to 4.2% from 4.3%.