June a Bad End to a Good Quarter for Hedge Funds
Plus, where hedge fund investors have been putting (and pulling) their money.
June marked a bad end to a good quarter. The Morningstar 1000 Hedge Fund Index fell 0.73% during the month, pushing down second-quarter returns to 2.07%. Year to date, the index is up only 0.31%, as hedge funds struggled through poor market conditions.
Equity markets suffered steep declines in June. Volatility returned to levels not seen since March, amid fears of recession and rising inflation. Most hedge funds are not immune to these economic shocks, despite what their name might imply.