It is hard to focus on the positives when not one index figure, either for June or for the first half of 2008, finds itself in plus territory. Nonetheless, Asia-Pacific hedge fund managers might draw some measure of grim satisfaction from a half year where they have managed to outperform the main market benchmarks.

For the first five months of the year, India suffered more than other single-country strategies, but managers outperformed significantly in June with the AsiaHedge India index losing 7.31% compared to the Sensex' misery-filled drop of 17.99% for the month. The Shanghai Composite dived 20.31% to clock up 48% worth of losses in the first half of 2008. However, China managers did well, like their Indian counterparts, to clock a loss of only 7.37% on the month.

All of the other AsiaHedge performance indexes were down on the month, but all outperformed their respective benchmarks.

India managers have the most catching up to do in the second half if they are to get back into positive territory. Now down 30.72%, India is well behind China, down 15.32%, and Australia, down 8.6%.

Of the regional strategies, Asia ex-Japan has the most catching up to do - down 11.85% compared to -9.45% for Asia including Japan.

Japan looks the best of the bunch right now, down only 2.83% compared to TOPIX's 10.54% drop for the first half.