The global hedge fund industry returned an average of +0.86% in June and finished up the second quarter at +2.09%, according to the just-released June/2Q 2016 eVestment Hedge Fund Performance Report. The overall positive returns for hedge funds and very strong returns in some specific segments highlighted the value hedge funds can offer investors during volatile market conditions.

And while the impacts on hedge funds of the late June BREXIT vote aren’t entirely clear yet, the report does note some challenges as a result of the uncertainty in European and world markets the late June referendum and its surprising (to some) result created.

Some key points from the report, according to author and eVestment Vice President and Global Head of Research Peter Laurelli, include:

·         Performance from both European-focused equity and credit hedge funds was impacted by the BREXIT vote in June. For instance, funds operating in Europe’s equity markets fell an average of -2.63% during the month, leaving them -2.19% in Q2 and -3.28% in 2016.

·         Average gains for managed futures funds in June of +3.88% for all managed futures funds and +4.57% for >$1 billion managers were the universes’ largest monthly increases since November 2014.

·         Commodity hedge funds continued to produce strong results, returning +2.72% in June, +4.93% for the quarter and +6.36% year to date.

·         Multi-strategy hedge funds produced mixed returns in June. Only 50% of managers were able to produce positive returns in last month and average returns from larger managers were below those of smaller funds, -0.39% vs. +0.97%, respectively.

·         Hedge funds focused on energy equities continued to post strong returns in June, further separating themselves from their other sector-focused industry peers. Returns of +1.74% in June put the universe +10.29% in Q2 2016 and +12.03% in 2016.

To download a full copy of the report, please click here.