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
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
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