On June rise, U.S. hedge funds report 12 straight months of gains

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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 year’s 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