The hedge fund industry continued its winning ways in June, returning +0.88% on the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. This marks the eighth consecutive month of positive results for hedge funds. On a year-to-date basis, the Barclay Hedge Fund Index shows a compounded return of +8.99%.
The majority of the hedge fund subsectors were also in positive territory in June. Perhaps the most notable of which was the Technology Index which rebounded emphatically from a modest loss in May with a +4.74% return in June. Among other sectors gaining ground for the month were the Emerging Markets MENA Index (+3.74), Distressed Securities Index (+3.35%), the Emerging Markets Latin American Equities Index (+2.45%), and the Option Strategies Index (+1.92%).
Relative to the best-performing subsectors’ gains in June, the losses of the lagging sectors tended to be smaller with the largest dip into the red ink coming from the Emerging Markets Sub Saharan Africa Index’s (-0.92%). Other retreating subsectors were the Fixed Income Arbitrage Index (-0.58%), the Event Driven Index (-0.28%) and the Global Macro Index (-0.17%).
Every single hedge fund sector has achieved and maintained a positive return over the year-to-date interval. All hedge fund subsectors continue to be led by the Emerging Markets Eastern European Equities Index up (+19.39%), followed by the Distressed Securities Index (+17.01%), the Emerging Markets MENA Index (+15.06%), the Equity Long Bias Index (+14.71%), and the Technology Index (+11.92%).
“Hopeful economic observations and rosy growth forecasts in June continued to reinforce confidence in the global reopening narrative that has been a primary mover of markets so far in 2021. Notable among them were a Eurozone growth rate not seen in more than 15 years, falling U.S. unemployment claims and a new round of record highs for major equity markets,” reflected Ben Crawford, Head of Research at BarclayHedge, “Nevertheless, we also see hints that investors, asset managers and policymakers are quietly becoming more circumspect. Whether it be the emergence of new, more contagious and virulent strains of COVID-19, faster-than-expected hardening of U.S. monetary policy or the ‘transitory’ inflationary pressures that stubbornly refuse to normalize, we see the potential for a period of volatility and brinksmanship ahead.”
For a complete table of BarclayHedge Hedge Fund and Sub-Index results for June, as well as historical returns, click here.
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Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.
BarclayHedge, a division of Backstop, currently maintains data on more than 7,100 hedge funds, funds of funds and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.
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