Pivotal Point of View - June 2019
Hedge Funds came back in June after a difficult month in May, when strategies across the board experienced declines. The best performing strategies in June were Managed Futures, Equity Sector, and Global Macro. Interestingly, Managed Futures also topped our monthly Alpha ranking, whereas Equity Sector hovered toward the bottom.
The first 4 months of 2019 saw managers with high beta to leveraged companies outperforming. This trend inverted itself in May but was back in action for June.
Based on our proprietary analysis, hedge funds perform best when rates are high or rising (as long as the rate of change is within reasonable limits). When rates vary between 2.0 – 4.0%, there is a positive correlation to overall asset class performance. Once rates fall below 2.0%, particularly as part of a negative swing on rates, hedge fund performance declines.
For access to performance data, our proprietary Alpha rankings and additional commentary, please download the full report.