Hedge Funds Lose Ground

Hedge funds lost ground again during second quarter, says data from Citco. It shows funds it administers lost 6.81 per cent for the three months ending June 30, after declining 3.23 per cent in the first quarter. In addition to the quarterly loss, a trend of net inflows into hedge funds ended, which had been the case each quarter of 2021 and in the first quarter of 2022. As well, 32.81 per cent of funds delivered a positive return during the second quarter, down from 40.21 per cent in the first quarter. The ‘event driven’ sector of the hedge fund industry, which was among the top performers last quarter, was the worst performer in the quarter, losing 17.04 per cent. Commodities and global macro were the only categories with positive gains, returning 4.58 per cent and 0.79 per cent, respectively.