WEST PALM BEACH, FL (HEDGECO.NET) – Hedge funds posted better results in June, than in April and May according to new data. The Edhec Business School report, claims 9 of the 13 hedge funds tracked byEdhec made money in June, while in April and May, 9 of those 13 funds lost money. However, cautious signs still remain, for instance, the average commodity or managed future funds lost about 3.2percent in June, bringing their year to date average to the negative territory.
These lackluster performances have caused some managers to shift assets, according to Charles MacKinnon, managing director of Melchior Private Investors. Mackinnon said that some funds that were previously closed have now begun taking in new assets. Another manager said they have been offered opportunity to invest money in some previously closed hedge funds.
The possible explanation of why some previously closed funds are beginning to accept investment assets again could be the result of redemptions from some of the fund�s partners. Others think such explanation may not be the sole reason because “Most funds of funds are sitting on so much cash that redemptions are not going to be a problem. Even leveraged funds of funds will have produced small positive returns so they should not be troubled by margin calls�.
Other managers think the hedge fund industry is not about to collapse, some think this may be a consolidation period for the industry that has grown so much so fast. There is also the issue that the markets have been basically flat this year so far, and that this situation has warranted many fund managers to opt for the sidelines, while holding assets in cash.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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