Hedge Funds Edge Higher in June

Hedge funds eked out gains in June, according to indexation and analysis firm HFR, with good gains in Equity Hedge and Event-Driven funds balanced out by a tough month for Macro funds, with the notable exception of currency managers.

The headline HFRI Fund Weighted Composite Index rose 0.44% in June for +7.57% year-to-date, led by Equity Hedge at +1.26% and Event-Driven at +1.23%, with Relative Value at +0.25%. It was a tougher month for Macro funds, however, although there was a stellar performance by currency managers.

The HFRI Macro (Total) Index was -1.49% in June for +6.12% year-to-date. Within this, the HFRI Macro Currency Index rose 7.11% bringing the index into the black for the first time in three months at +4.84%. The swings of commodity markets were felt by the Macro Commodity Index at -3.36% (+2.11% year-to-date), while active traders dropped 0.88% (+4.75%), and Multi-Strategy funds were -1.06% (+3.25%).

Best performance in the Macro segment for the year-to-date remains the Systematic Diversified Index at +9.06%, following a drop of 1.42% in June. Systematic funds continue to outperform discretionary year-to-date – in June the Systematic Directional Index was -1.2% and the Discretionary Directional Index -1.43%, for +8.96% and +5.19%. respectively.

It was another tough month for crypto funds, with the HFR Blockchain Composite index dropping 12.68% in June for -20.18% year-to-date. Within this, the HFR Cryptocurrency Index was -13.11% in June for -20.47% year-to-date.

“Hedge funds advanced for the month as equity markets eclipsed new records driven by AI gains, as well as contributions from exposure to the record Space X IPO, although managers were forced to navigate increasing risk off sentiment throughout the month driven by concerns about valuation and the sustainability of AI spending,” says Kenneth Heinz, president of HFR. “While these powerful AI and IPO trends drove industry gains in H1, the macroeconomic outlook for H2 presents a mixed picture, with tension between continuation of these same drivers juxtaposed with an evolving risk profile as it pertains to AI spending, geopolitical risk, global supply chain constraints, uncertainty as to the near-term path of interest and the impact of shifting political sentiment on upcoming elections.

“While it is likely that H2 2026 might look very different from H1, managers which are tactically positioned for these exposures and rapidly shifting markets cycles are likely to drive industry gains,” he adds.