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CCTV Script 08/07/14

— This is the script of CNBC's news report for China's CCTV on July 8, Tuesday.

Welcome to the CNBC Business Daily, I'm Qian Chen.

It could a rough year for hedge funds, with markets seemingly surging higher into uncharted territory.

Hedge funds returned an average of 7.4 percent in 2013.

But through May this year, this number reached only 2 percent.

CNBC's Kate Kelly looks at who managed to deliver returns, in the first half.

WE'RE ABOUT TWO WEEKS OUT FROM OUR ANNUAL HEDGE-FUND CONFERENCE DELIVERING ALPHA, AND IT'S BEEN A VERY UNDERWHELMING YEAR IN GENERAL.

THE AVERAGE FUND WAS UP ONLY 2 PERCENT THROUGH MAY -- A PERIOD IN WHICH THE S AND P WAS UP DOUBLE THAT. AND WHILE JUNE FIGURES AREN'T YET OUT,

ANECDOTAL EVIDENCE SUGGESTS THAT FUNDS ARE STILL LAGGING THE MARKET. OF COURSE, THERE ARE EXCEPTIONS. PERSHING SQUARE, FOR ONE -- (FS--ACKMAN OUTPERFORMING PEERS) THE ACTIVIST HEDGE FUND RUN BY BILL ACKMAN THAT IS UP 25 PERCENT THIS YEAR, LARGELY ON THE PERFORMANCE OF ALLERGAN, THE BOTOX MAKER THAT IS NOW ITS BIGGEST HOLDING. CANADIAN PACIFIC AND BURGER KING HAVE ALSO DONE WELL FOR IT, AS HAS A SHORT POSITION IN HERBALIFE.

ANOTHER WINNER IS THE GLENVIEW FUNDS, RUN BY LARRY ROBBINS, UP OVER 11 PERCENT. ROBBINS HAS SCORED BIG WITH SOME OF HIS HEALTH CARE HOLDINGS, INCLUDING STOCKS LIKE HUMANA, BUT ONE HUGE WINNER FOR HIM THIS YEAR AT LEAST BASED ON THE MOST RECENT FILINGS HAS BEEN FLEXTRONICS, UP 43 PERCENT.

THESE GUYS HAVE DONE GREAT WITH SAVVY STOCK PICKS -- A THEME THAT HAS DEFINITELY WORKED FOR SOME, AS THE MARKETS TEST AND EVEN CONTRADICT PEOPLE'S ASSUMPTIONS.

TRADES LIKE THE NIKKEI LONG, THE TREASURY SHORT, AND HOLDING BASKETS OF TECH HIGHFLYERS BURNED MANY DURING THIS FIRST HALF.

YET DESPITE IMPROVED JOB NUMBERS AND GDP, SOME OF THE MARKET VETERANS I KNOW SEE THE S AND P'S STRENGTH AND THE VIX'S SEVEN-YEAR LOWS AS ONLY A TEMPORARY RESPITE -- AND PREDICT GREATER VOLATILITY, IF NOT A BIG STEP DOWN IN THE STOCK MARKETS, LATER THIS YEAR (FS ---DA PROMO) NO DOUBT WE'LL HEAR MUCH MORE ABOUT THEIR OUTLOOK AT OUR UPCOMING DELIVERING ALPHA CONFERENCE, SARA, TO BE HELD JULY 16 AT THE PIERRE IN NEW YORK. BACK TO YOU

That wraps up this edition of the Business Daily.

I'm Qian Chen, reporting from CNBC's Asian headquarters.

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