Returns down on June blitzkrieg

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The late spring's steep, correlated market correction continued through the first weeks of June, wreaking havoc on hedge fund returns and dashing the hopes of many managers looking to claw back losses from the prior month.

"May was extremely bad, and June has continued the correction. There's real damage out there," said one investor.

A broad range of strategies got slammed in the first half of the month as currencies gyrated, stock markets around the world continued to crater and spreads on low-quality credit finally began to widen.

Few were harder hit than long/short equity funds, early estimates show. As