Hedge Funds Q2 2012 Performance
Hedge Funds Fall but Beat Major Indexes in Q2 2012Hedge funds did not do extraordinarily well last quarter but they did manage to beat the S&P 500 and Nasdaq indexes--a feat that was not accomplished in the first quarter, as the S&P outperformed most hedge funds then. According to the HFR Global Hedge Fund Industry Report, the HFRI Fund Weighted Composite Index, which is comprised of 2,200 hedge funds with at least $50 million AUM, fell 2.7% in Q2.
Not even the most savvy fund managers are immune to global uncertainties. Last week, John Paulson told his clients that his Advantage Plus fund slid 8% while his gold fund edged down 0.7% in June, according to media reports.
Paulson is reportedly betting against Europe, where a series of bailouts for now has managed to prevent a further deterioration in the situation.Total industry capital also dropped 1.3% at $2.10 trillion from $2.13 trillion, underscoring hedge funds’ weak performance in the quarter.
Investors continued to focus on strategies with limited exposure to global equity markets and allocated $4.1 billion in net new capital to hedge funds during the quarter, bringing net inflows in the first half of the year to more than $20 billion, HFR said. Source