Hedge Funds

Hedge funds struggle to flat finish in June


June got off to a troubling start for most hedge funds as equities continued their spring freefall and other asset classes gyrated. But a late-month rally, spurred in part by comments coming out of the Federal Open Market Committee meeting, helped managers trim earlier losses.

According to preliminary research, the Absolute Return Composite Index returned 0.10% for the month, aided by solid performances from mortgage-backed and arbitrage players. For the year's first half, hedge funds have netted 5.2%, early research shows.

Among the best performing portfolios in June were mortgage-backed funds, which gained 0.91% to total 5.04% for the year.