Hedge funds stay afloat in June

Equity markets pulled back during June, but hedge funds still posted positive returns, according to the Lipper Hedge Funds Insight report. During June, the average performance for the 6,600 hedge funds Lipper Tracks was 0.97%, some 19 basis points above the Credit Suisse/Tremont Hedge Fund Index. Hedge funds also outpaced equity and fixed income indices during June, as the S&P 500 Index fell 1.66% and the Lehman Global Bond Aggregate lost 0.44%. Although hedge funds reported positive performance for the second quarter, reaching 5.19%, they still lagged behind the S&P 500, which had returns of 6.28% for the period. Managed futures topped the list as the best performing hedge fund strategy, gaining 3.03%. Event-driven strategies were at the bottom, losing -0.04%. Net inflows into hedge funds in May were $1.65 billion, bringing year-to-date inflows to $46.58 billion. Assets under management for alternatives then also grew by 2.59% to $1.23 trillion.