Final performance for the Credit Suisse/Tremont Hedge Fund Index is confirmed up 0.43% in June, according to Oliver Schupp, President of Credit Suisse Index Co., Inc.
Commency of Mr. Schupp:
Hedge funds have finished in positive territory for five out of the last six months, posting returns of 0.43% in June, with gains for the year totaling 7.18%. The second quarter appears to have been a turning point for hedge funds with 87% of all gains for the year generated in the last three months. Convertible Arbitrage managers were once again the strongest performing sector, up 4.05% for the month.
The strategy has been up every month this year, with managers capitalizing on mispricings in the space, and the outlook for the sector remains strong as many companies continue to view converts as a cheap financing option. Managed Futures managers, however, continue to struggle as volatile markets display unclear or difficult-to-follow trends.
L.D.