Hedge funds around the world saw negative returns in June to end seven months of straight gains amid a broad pull-back in equity markets, with those in Asia ex-Japan the worst hit, data from research firm Eurekahedge show.
The Eurekahedge Hedge Fund Index fell 1.47 percent in June, marking its first decline this year, the company said in a note published late on Wednesday. That compared with a fall of just over 3 percent in the MSCI World Index.
"June witnessed a continuation of downside momentum from the end of May as markets reacted adversely to speculation about a slowdown in the Fed's bond buying operations," Eurekahedge said.
"Asia ex-Japan markets were the worst hit as lackluster manufacturing data from China continued the flow of dreary macroeconomic numbers from China," it added.
Hedge funds have profited from the sharp gains in equity markets since last year.
But talk that the Federal Reserve could start to take back its monetary stimulus for the U.S. economy has unnerved global stock markets in recent months and some analysts say that uncertainty is also weighing on hedge funds.