MSCI, Van Global Hedge Fund Indices Up in June

July 14, 2003 ( - The MSCI Hedge Fund Index was up 0.5% in June, according to preliminary data from 60% of the funds.

Components MSCI Specialist Credit Index and MSCI Multi-Process Group Index led the way with June advances of 1.7%. Following close behind was MSCI Security Selection Index, which turned in a 1.4% gain during the month.

By far the big loser in the index was the MSCI Directional Trading Index, which racked up a 2% loss during the month. The MSCI Relative Value Index was flat in June, according to a MSCI news release. Comparatively, the index reported a 3.6% May gain and 8% year to date.  

Van Hedge Report

Meanwhile, in other hedge fund news Monday, Van Hedge Fund Advisors International, Inc. reported that the Van Global Hedge Fund Index gained 1.2% net of fees in June and 8% net for the first half of 2003. The June figure is based on over 800 reporting hedge funds.

The Van US Hedge Fund Index, including only hedge funds domiciled in the United States, returned 1.2% net in June, increasing its year-to-date total to 8.7% net. The Van Offshore Hedge Fund Index, based on only non-US hedge funds, rose 1.3% for the month, generating a 7.5% net gain for the first half of the year.

Emerging Markets hedge funds again produced some of the best returns, averaging a 3.3% net gain in June, the best among the Global Index’s fourteen strategies, according to Van Hedge, which also noted the index’s 15.1% net performance also tops the year-to-date list.   Aggressive Growth and Value netted average returns of 2.2% and 1.6% in the Global Index for June, respectively, increasing their year-to-date net gains to 13.2% and 9.9%.

In addition, Distressed Securities and Special Situations, both strategies that target securities subject to unusual corporate events, continued to do well as an uptick in mergers and acquisitions, as well as a steady flow of bankruptcy filings pumped up their returns.   The Distressed Securities index earned 2.6% net in June (up 13.7% net year-to-date), while Special Situations rose 2.2% for the month and is up 9.5% year-to-date.