MSCI Hedge Index Ahead in June

July 26, 2004 ( - The MSCI Hedge Fund Composite Index was up 0.15% in June, bringing its year-to-date performance up to 1.61%, according to an MSCI news release.

The Composite was way behind the MSCI World Equity Index, which advanced by 2.05% in June (3.52% year to date).  The Composite Index performed much better than the World Sovereign Debt Index, which crawled forward to produce a tiny 0.04% gain over the month (-1.61% year to date). 

The highest April return came from the Specialist Credit Index, those funds that seek to lend to credit-sensitive issuers, which reported a 1.27% hike (5.25% year to date). Next in line among gainers was Security Selection Index, which combines long positions and short sales with the aim of benefiting from their ability in selecting investments while offsetting systematic market risks. Security Selection turned in a 0.89% advance (2.68% year to date).

The Multi-Process Group Index, an index containing funds that use strategies in which a single investment process does not account for more than 80% of their risk capital pushed ahead in June for a 0.66% increase (3.51% year to date).

The Relative Value Index fell back in June with a 0.25% loss (1.08% year to date).  Relative Value is the index focused on spread relationships between pricing components of financial assets or commodities.

 Finally Directional Trading Index reported a decrease of 1.84%. (-2.68% year to date).Directional Trading focuses on strategies based upon speculating on the direction of market prices of currencies, commodities, equities, and bonds in the futures and cash markets.

The MSCI Hedge Fund Indices are composed of more than 190 indices and the MSCI Hedge Fund Indices now includes over 1,700 hedge funds.