Despite hedge funds posting a slightly positive performance of 0.06 per cent for June, according to the Lipper Hedge Fund Composite Index, their risk/return profile remained intact.

June’s return brought year-to-date performance to minus 2.88 per cent.

Dedicated short-bias (+1.84 per cent) was the best performing strategy for the month as it leveraged the global stock market’s slide.

Other hedge (+1.01 per cent) was the runner-up; performance for the classification benefited from volatility-trading strategies.

At the bottom of the performance league table options arbitrage (-0.67 per cent) was the worst performing strategy at the end of the month.

All style-investing strategies posted losses, with large-cap (-5.23 per cent) faring slightly better than mid- and small-cap stocks (-5.75 per cent), and with growth (-4.72 per cent) outpacing value stocks (-5.73 per cent) at the end of the month.

Long/short equity (-0.20 per cent), focusing on US companies, registered a slightly negative return for June as equity markets sold off. 

Conversely, dedicated short bias (+1.84 per cent) posted a solid return for the month.

Meanwhile, funds focusing on European companies mainly posted losses as European stocks continued to retreat.

Managed futures (+0.09 per cent) ended June in marginally positive territory as commodities traded higher during the month.