New Dow Jones Credit Suisse Hedge Fund Index Commentary

The Dow Jones Credit Suisse Hedge Fund Index finished down 0.40% in June. A new monthly commentary offers insight into hedge fund performance through the month of June. Some key findings from the report include:

• Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, finished May down 0.40%, with 5 out of 10 strategies in positive territory;
• In total, the industry saw estimated outflows of approximately $2.53 billion in June, bringing overall assets under management for the industry to approximately $1.73 trillion;
• The Equity Market Neutral and Fixed Income Arbitrage sectors experienced the largest asset inflows on a percentage basis in June, with inflows of 0.93% and 0.43% from May 2012 levels, respectively;
• Long/Short Equity funds posted positive performance as June was somewhat of a “risk-on” month and select Bank exposure performed positively as Financials, in general, were positive; and
Event Driven funds generated overall negative performance in June against the continued backdrop of an uncertain economic environment.

While M&A activity experienced a slight decline in newly announced transaction volume in June, credit strategies generated gains during the month due to supportive technical conditions and improved risk appetite from investors.