Equity strategies were broadly negative but those with a short bias posted the largest gains, the group reports. The HFRI Equity Hedge Index fell -1.2% as managers who reduced net and gross exposures to protect capital were unable to fully participate in the late June rally.
According to Man, in European equities, those exposed to financials like Lloyds and Barclays fared worst, but funds with a higher weighting of consumer discretionary stocks helped protect returns.
But equity hedge funds weren’t the only ones to have a rocky June. The Man report highlights almost all other areas also struggled against the headwinds of a difficult trading environment. The Greek debt story and unexpected policy interventions such as the release of strategic oil reserves added uncertainty and led to a general decrease in gross exposures across the industry, it says.
Managed futures losses generally came after emerging trends reversed sharply, although managers with large fixed income allocation saw smaller losses. The hedge fund group notes many managed futures managers were drawn in by trends in the first three weeks of June, which later snapped back in the final week as events in Greece unfolded.
Relative value and event driven styles were also held back by falls in both equity and credit markets. Despite the many macro issues playing out in June, global macro strategies too grappled with vagaries of market conditions last month. According to Man, those long on energy and agricultural positions were particularly hurt.
