Continuing to reverse last year’s losses, hedge fund returns rose an estimated 6.41% for the first six months, according to the Absolute Return database. June was generally a flat month, up an estimated 0.50%. This year’s gain is in sharp contrast to 2008, when hedge funds lost an average of 12%.
On the back of tightening credit markets and a sentiment that the economy – and the housing market in particular – may be stabilizing, the Absolute Return Mortgage-Backed Securities Index gained an estimated 3.65% in June, up 9.29% for the year so far.
Convertible arbitrage is also