Hedge Funds June Performance

Hedge Funds June Perofrmance

Hedge Fund Index Down 1.35% in June 2010

Hedge funds had another month of poor performance marking a change since 2009´s year of stellar returns. According to the Hennessee Hedge Fund Index, the average hedge fund declined 1.35% in June 2010. Hedge funds remain up +0.20% YTD.

Opalesue Industry Update - Hennessee Group LLC, an adviser to hedge fund investors, announced today that the Hennessee Hedge Fund Index declined –1.35% in June (+0.20% YTD), while the S&P 500 decreased –5.39% (-7.57% YTD), the Dow Jones Industrial Average declined -3.58% (-6.27%), and the NASDAQ Composite Index fell -6.55% (-7.05% YTD). Bonds advanced, as the Barclays Aggregate Bond Index increased +1.57% (+5.33% YTD), due to increases in Treasuries, Investment Grade and High Yield bonds.

“The rebound from the worst recession since the 1930’s faces added risks from Europe’s debt crisis causing managers to remain intently focused on Europe,” commented Charles Gradante, Co-Founder of Hennessee Group. “Increased bank funding stress and declining liquidity have been the main catalyst for the recent correction in global risk assets. Managers question the ability of some EU governments to bail out their banks when they are having difficulty funding sovereign debt, as credit default swaps for sovereign debt have widened at the same pace as credit default swaps for bank debt.”

“As in May, hedge funds continued to decline, amid a broad based reduction of risk and significant volatility. Hedge fund risk management performed well, with hedge funds declining only one-fourth of traditional benchmarks,” said Lee Hennessee, Managing Principal of Hennessee Group.  Source

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