Hedge Funds End First Half of 2007 at +7.86%

New York (HedgeCo.Net)- According to early estimates at the HFN Hedge Fund Aggregate Average was +1.40% in June 2007 and ended the first half of 2007 +7.86%.

The HFN Hedge Fund Aggregate Average is an equal weighted average of all single manager hedge funds and CTA/managed futures products in the HedgeFund.net database. The increase was the 11th positive month in a row for hedge funds. After trailing the prior three months, the Aggregate outperformed the S&P 500 Total Return which ended June -1.66% and +6.96% YTD. The HedgeFund.net database consists of over 7,400 current hedge fund, fund of funds, and CTA products.

Contrary to the previous three months, hedge funds on average produced positive results despite most major global equity markets falling during the month. What markets did supply in June was a sharp increase in volatility.

Positive returns from both the HFN Long Only Average and HFN Long/Short Equity Average, +1.15% and +1.05%, respectively in June, displayed the savvy stock picking and shorting abilities of managers. The early effects of the subprime CDO debacle were seen in the HFN Finance Sector Average which was -0.55% in June and is -1.09% YTD. The broad drop in equity markets did favor the HFN Short Bias Average, +2.65% in June, but remains -2.48% YTD.

Emerging markets and the energy sector were highlights for hedge funds in June. Aided by the rise in oil prices firmly above $70/barrel, the HFN Energy Sector Average continued its strong performance returning +1.24% in June and is +12.15% YTD. Strong markets in Brazil, Russia and emerging Asia underpinned another positive months for the HFN Emerging Markets Average, +1.95% in June and +11.21% YTD.

Alex Akesson

Editor
HedgeCo.Net
Email: [email protected]