Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index will experience negative performance in June, with a 0.88 per cent decrease for the month.

This brings year-to-date performance to 0.59 per cent.

Global equity markets, as represented by the MSCI World index, fell 3.56 per cent in June and 10.88 per cent in the first half of the year.

Global macro sub-index was one of the positive performers in June, with an estimated increase of 0.53 per cent in June and 4.15 per cent year-to-date. Macro managers have largely avoided market volatility due to their bearish outlooks and low equity market exposures. The majority of gains in the space were generated by currency investments.

Event driven sub-index funds were down an estimated 1.97 per cent in June with managers experiencing mixed performance for the month. Although some managers generated profits by capitalising on special situation investments and opportunities in distressed credit, equity related losses detracted from gains and only the risk arbitrage sub-index produced positive returns for the month.

Long/short equity sub-index funds finished down an estimated 2.30 per cent in June as equity market sell-offs continued to hurt returns.

Conversely, dedicated short bias was the top performing strategy last month, finishing up an estimated 4.84 per cent.