Winners and losers split as rocky June ends lively H1

July 29, 2013  

Paul Brewer
Stuart Roden
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 


Planning for a high-income year due to 457A income? Download this short paper to find out more about the opportunity to reduce tax liability and have significant charitable impact..

Click here for more details.

Latest Poll

How will hedge funds finish 2017?

 - 70%
 - 20%
 - 10%

View previous results