After three consecutive positive monthly results the UCITS HFS Index experiences a draw-down again, reporting losses of -0.41% in June 2016. The broad index started slowly into the month, posting marginal gains and losses of 0.02% and -0.05% in week one and two respectively. The biggest hit for the UCITS HFS Index surprisingly came not in the week of the Brexit referendum itself, but in the week before (week three) with losses of -0.49%. In the forth week of trading small losses of -0.08% proved that the majority of UCITS hedge funds anticipated potential risks of the Brexit referendum correctly, with the last days of trading in June even adding 0.19% performance in week five. Of all funds tracked 37.20% reported gains in June 2016.
From a sub-strategy perspective five of the twelve strategies reported positive results in June, the top performers being CTA (1.75%), Commodity (1.73%) and Fixed Income (0.56%). All three strategies benefited from the market turmoil after the Brexit referendum, but CTA and Commodity also posted high returns in the first half of month compared all other UCITS hedge funds. The worst performing strategies in June were Global Macro (-2.33%), L/S Equity (-1.27%) and Market Neutral (-0.64%). While the latter took more losses in the market turmoil after the British referendum to leave the EU, the other two took their biggest weekly loss in the week before the referendum and only were slightly negative thereafter. Still seven strategies remain negative for 2016, the worst performer now being Global Macro (-3.73%) before L/S Equity (-3.14%). The best performer by far this year remains Commodity (5.19%). From a year to date perspective the broad UCITS HFS Index now stands at -0.79% in 2016.
About the UCITS HFS Index
The UCITS HFS Index Series is the first index family that tracks all UCITS funds using hedge fund strategies. The UCITS HFS Index Series includes all UCITS funds that apply absolute return strategies, have more than 10 Mio. € of assets under management, offer at least weekly liquidity and have reported numbers for more than one month. Index tracking funds, long-only and 130/30 strategies are excluded.
The indices are calculated on every Friday and at the end of each month by the index provider 2n20.com AG and are published on the website www.ucitsindex.com.
Founded in 2009, the Pfaeffikon-based Swiss 2n20.com AG is a financial servce provider specialized in internet based services tailored for the hedge fund industry. It launched the first index family for hedge funds in UCITS wrapper – the UCITS HFS Index family – and acts as index provider in this regard. 2n20.com provides institutional investors with information via its databases and newsletters and offers investable products on and licensing of its indices. Furthermore 2n20.com offers institutional money managers a price comparison and negotiation service in order to optimize their service provider relationships or setup new fund structures via its Negotiato.rs platform (www.negotiato.rs).