Hedge Funds ended the first half in negative territory as the escalating trade war roiled global markets. Funds declined 0.33% for the year and slid 0.64% in June, wiping out gains seen in May, according to Bloomberg Hedge Fund Database. Year-to-date, CTA/Managed Futures strategies remained the worst performer, down 4.1%, due in part to currency volatility and weakness in emerging markets. In June, those strategies declined 0.43%. Markets have been on edge for the last several weeks as President Donald Trump has imposed trade tariffs spurring a reprisal from China. Trade issues threaten to spread to other countries. These concerns have overshadowed economic data hinting that global growth is on track as well as the start of earnings season, which push to the forefront when there is a pause in tensions. Overall, five of seven tracked fund strategies by Bloomberg’s Hedge Fund Database saw declines in June.
