Dispersion has widened significantly in the performance of European hedge funds after a volatile first half of the year, with a wild month in June ending a much trickier second quarter across most major hedge fund strategies.
With equity and bond markets both dropping sharply in June, many previously well-performing managers were wrong-footed – with some sharp losses among CTA, long/short equity and global macro funds, although performance has generally picked up again in July.
Managed futures funds were hit hardest in June’s turbulent markets – with several CTAs including Cantab and BlueTrend showing double-digit losses to the end of June after a severe second-quarter reversal. In contrast, other top CTA names like Winton and Altis are both up by around 4-5% for the year, while Man AHL Diversified is down by some 2%.
In European and global equity, the dispersion between individual fund returns is even more pronounced after the change in market conditions since May – with the year-to-date performance spectrum in European equity spread from +35% to -15%, and in global equity from +66% to -35%.
June took its toll on some prominent equity names, with Crispin Odey’s Odey European dropping more than 7% on the month – although it was still up by some 14% for the first half – and Nicolai Tangen’s big AKO fund shedding almost 5%.
Among the larger European-based equity funds the stand-out performer in June was Stuart Roden and Peter Davies’ $8 billion Lansdowne Developed Markets Fund – which gained just under 4% on the month for a strong first-half performance of over 17% and a rolling 12-month return of 30%.
Horseman Global was also up by almost 4% in June for a first-half return of nearly 17%, while David Yarrow’s Pegasus Fund is showing a H1 return of some 36% and Davide Serra’s Algebris Global Financials was up almost 25% to the half-year mark.
In macro, Paul Brewer’s Rubicon Global was among the few prominent names on the right side of the big market moves in fixed-income in June, gaining over 5% for a first-half return of nearly 25%.
Brevan Howard, by contrast, suffered a 3% loss – in its worst month since September 2008 – while many other leading macro managers were caught out by rising interest rate and central bank policy concerns.
For full details on first-half performance, please click here