Global equities bounce back boosts hedge funds in June


The Eurekahedge Hedge Fund Index was up 1.42% in June, supported by the robust performance of the global equity markets. The resumption of economic activity of major countries, particularly in Europe and the US combined with an upbeat macroeconomic data that indicates a faster-than-expected recovery of the global economy from the crisis, provided support to global equities.

Hedge fund managers were up 1.42% in June, bringing their year-to-date loss to 1.24%. The resumption of economic activities from most countries, combined with the strong macroeconomic data, boosted the global equity markets' performance.

On an asset-weighted basis, hedge funds were up 1.21% in June, as captured by the Eurekahedge Asset Weighted Hedge Fund Index (USD). The index is currently down 4.93% year-to-date.

In the US, the equity market in the region reacted positively, as the labour data, particularly the nonfarm payroll beat market consensus by a large margin. The tech-heavy NASDAQ gained 4.05% in June, bringing its year-to-date return to 10.05%, while the S&P 500 was up 0.87% during the month.

In the same vein, risk assets in Europe rallied as the EU leaders proposed €750 billion of stimulus package to soothe the economic pain brought by the coronavirus. The DAX and CAC 40 were up 6.25% and 5.12% over the month respectively.

In Asia, Chinese equity markets shrugged off the looming US-China trade tension, as the region printed robust macroeconomic data, particularly the Purchasing Manager Index, which returned to above 50 - an expansion level. The Shenzhen Composite recorded a double-digit return of 10.56%, pushing its year-to-date return to 14.66%, while the Hang Seng returned 6.38% throughout the month. Returns were positive across geographic mandates in June, with fund managers focusing on Asia ex-Japan up 3.71%, outperforming their North American and European peers who were up 2.02% and 1.58%, respectively.

Across strategies, distressed debt, multi-strategy and long/short equities fund managers were up 2.96%, 2.29% and 2.28% respectively throughout the month.

Roughly 66.4% of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in June, and 13.4% of the hedge fund managers in the database were able to maintain double-digit returns over the first half of 2020.

Eurekahedge Hedge Fund Index, Equity Market, Hedge Fund, Global

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