Hedge funds in June demonstrated their ability to protect
from the downside, albeit with wide dispersion as shown in the
monthly performance figures reported thus far. Commodity and
CTA firms did particularly well for the month, while distressed
and technology long/short equity funds both gave up gains.
Preliminary data indicate that the Absolute Return
Composite Index was up slightly in June, at 0.19%. That
compares to an 8.6% decline in the Standard & Poors
500 Index and a 0.08% loss for the Lehman Aggregate Bond
In this years first half, the AR Composite climbed
1.79%. In comparison, the S&P 500 gave up 12.84% and the
Lehman Index rose 1.13%. Tight net exposure helped funds
Overall, commodity firms turned in the biggest gains, rising
5.06% for the month to put them up 13.35% for the year.