Daily Management Review

Global Hedge Funds Excel, Propelled By AI-HFR In June


Global Hedge Funds Excel, Propelled By AI-HFR In June
According to data source HFR, global hedge funds saw gains of 2.2% in June as artificial intelligence-related stocks rose and the banking crisis subsided.
Hedge funds increased their investors' wealth by 3.45% in the first half of the year.
"Hedge funds surged in June, led by growth equity exposures and, specifically, artificial intelligence. While gains were driven by these dynamic exposures, industry performance was strong across-the-board," said Kenneth J. Heinz, president of HFR.
With gains of 2.94% and 5.55%, respectively, equity hedge funds had the greatest performance out of all four categories tracked by HFR in June and for the whole year.
Even yet, the S&P 500 index, which increased 16.9% in the first half of 2023, outperformed equities hedge funds.
Macro hedge funds gained 1.47% last month, erasing some of their earlier-in-the-year losses, and ended June down 0.47% year to date. Hedge funds that made predictions about economic trends had a difficult start to the year since they were severely impacted by the banking crisis in March.
Investor activism and M&A bets are examples of event-driven hedge funds, which increased by 2.99% in the first half of the year and by 2.78% in June.
Trading asset price dispersion, relative value strategies concluded June up 2.66% year over year and 0.9% month over month.