Hedge Funds Outperform Equity Benchmarks in Turbulent Markets

Hedge funds as measured by the Greenwich Global Hedge Fund Index (“GGHFI”) navigated volatile markets to finish the month with a slight loss. The GGHFI shed 1.32% compared to global equity returns in the S&P 500 Total Return (-1.67%), MSCI World Equity (-1.73%), and FTSE 100 (-0.74%) equity indices. 28% of constituent funds in the GGHFI ended the month with gains.

“Market Neutral and Long-Short Equity funds both outperformed broad equity market indices for the month,” notes Clint Binkley, Senior Vice President. “Managers were fully occupied in negotiating the risk trade as investor sentiment changed dramatically over the course of the month. We continue to believe that in volatile markets actively managed hedge fund portfolios will provide superior results to index investing.”

Hedge Fund Strategy Highlights

 Short-Biased and Fixed Income Arbitrage Funds post positive results for the month
 Long-Short Equity managers decline 1.06%, less than equity benchmarks
 Managed Futures funds slide 2.39% on intra-month selloff in equities and commodities
 Long-Short Credit and Fixed Income Arbitrage funds lead hedge funds on year-to-date basis, up 4.62% and 4.12%, respectively
 Emerging market funds decline marginally more than Developed Market managers; US/Canada funds are clear winners for the year, up nearly 3%

Strategy Group Summary

June Return
YTD Return

Greenwich Global Hedge Fund Index
-1.32%
0.42%
Market Neutral Group
-0.80%
1.72%
Equity Market Neutral
-0.90%
-0.15%
Event Driven
-1.18%
2.41%
Distressed Securities
-0.55%
3.22%
Merger Arbitrage
-0.14%
2.62%
Several Strategies
-2.05%
1.37%
Arbitrage
-0.28%
1.51%
Convertible Arbitrage
-0.69%
1.95%
Fixed Income Arbitrage
0.12%
4.12%
Other Arbitrage
-1.18%
-2.07%
Long-Short Equity Group
-1.06%
1.06%
Growth
-1.49%
1.25%
Opportunistic
-1.02%
0.47%
Short-Biased
3.65%
0.08%
Value
-1.01%
1.30%
Directional Trading Group
-2.04%
-2.59%
Futures
-2.39%
-3.16%
Macro
-1.08%
-1.26%
Specialty Strategies Group
-1.17%
1.62%
Long-Short Credit
-0.29%
4.62%
Multi-Strategy
-1.70%
-0.28%

Greenwich Regional Hedge Fund Indices

June Return
YTD Return

Developed Markets Composite
-1.25%
0.60%
Global
-1.65%
-0.83%
Asia
-0.18%
-0.84%
Europe
-1.04%
-0.19%
North America
-0.92%
2.86%
Emerging Markets Composite
-1.43%
-0.92%
Emerging Markets Global
-1.26%
0.96%
Emerging Markets Asia
-1.68%
-2.71%
Emerging Markets Europe
-1.41%
-0.25%
Emerging Markets Latin America/SA
-0.93%
0.07%