GO
Loading...

Hedge funds lose big in June as outflows jump

Tuesday, 16 Jul 2013 | 11:04 AM ET
Adam Jeffery | CNBC

Hedge funds across the world posted their largest loss for 12 months in June, as heightened fears of slowing growth in China and the tapering of the Federal Reserve's bond buying program hit performance, new research has found.

Total assets under management declined by $21 billion over the month to $1.89 trillion, according to hedge fund database Eurekahedge. This decline was mostly a result of poor performance, with managers losing a total of $18.84 billion in June.

(Read More: Record number of asset managers bank on strong dollar)

As a result, the the Eurekahedge Hedge Fund Index slipped 0.69 percent in June, ending a 7 month winning streak.

Fixed income and North American hedge funds both suffered their largest performance-based decline in almost two years, according to the report, with North American funds experiencing their first month of negative flows this year. Europe, Latin America and Asia ex-Japan hedge funds also saw outflows over the month.

(Read More: Stock Picking Is Back, and Hedge Funds Win)

Time to Return to Hedge Funds?
One of the topics that will be discussed at next week's Delivering Alpha Conference will be the impact of Obamacare. CNBC's Kate Kelly takes a look at how hedge funds are playing it. And Eric Siegel, Citigroup, discusses his strategies on where he sees the best opportunities for investors now.

"June witnessed some heightened risk aversion in global markets amid slowing economic growth in China and the US Federal Reserve's indications that it might scale back its bond buying program," the report said. "With the exception of Japan, all regional mandates ended the month in negative territory with Asia ex-Japan focused hedge funds seeing the largest decline."

Japan-focused hedge funds saw positive asset flows in June after a 12-month run of outflows, which saw funds investing in Japan losing $4 billion between June 2012 and May this year.

By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave