Turmoil in the subprime mortgage market may have led to the
recent collapse of at least two U.S. hedge funds, but the
broader hedge fund market is weathering the storm well, at
least so far.
The Absolute Return Composite Index rose 0.60% in
June, finishing the years first half with a net gain of
6.24%, preliminary data show. Hedge funds have advanced each of
the past 12 months, as measured by the composite, for a
one-year trailing return of 12.36%.
A variety of strategies proved their ability to deliver
absolute return in June. The Absolute Return U.S. Equity Index
rose 0.59% for the month, even as the S&P 500 Index
declined 1.78%. Similarly, the Absolute Return Technology Index
climbed 1% while the Nasdaq Composite slipped 0.05%. And the
Absolute Return Global Equities Index finished up 0.90%,
compared with the MSCI World Index (ex-USA), which...