Hedge funds as measured by the Greenwich Global Hedge Fund Index cut net exposures and limited the losses experienced by markets in June. The GGHFI shed 0.84% compared to global equity returns in the S&P 500 Total Return -5.23%, MSCI World Equity -3.56%, and FTSE 100 -5.23% equity indices. 42% of constituent funds in the GGHFI ended the month with gains.

The Greenwich Composite Investable Index fell 0.85% during June as equity markets traded lower in volatile trading. 7 of 9 Greenwich Investable Indices moved lower on the month, although most declines were less than 1%.. The Greenwich Arbitrage Investable Index was the best performer in June, gaining 59 basis points. The Long-Short Equity Investable Index lost 1.42%, less than half the loss experienced by the S&P 500 and the MSCI World Equity Index. Year-to-date, Fixed Income strategies lead other Investable Index strategies, with Event-Driven, Long-Short Credit, and Arbitrage Indices gaining 5.11%, 2.77%, and 3.39%, respectively.

“The last week in June turned an otherwise profitable month on average into a slight loss for most funds. Global equity markets are still struggling to find direction as economic forecasters offer mixed signals. Equity based hedge funds have little other choice but to keep net exposures relatively low and wait for more opportunistic conditions. In this type of scenario, arbitrage and market neutral hedge fund strategies really begin to prove their worth,” noted Clint Binkley, Senior Vice President.