U.K. pooled hedge funds of funds returned a median -1.2% in the second quarter, compared with 5.2% in the previous quarter, according to Mellon Analytical Solutions' first CAPS Pooled Fund Database. The median returns for the one-, three- and five-year periods ended June 30 were 11%, 8.5% and 9.1%. The average fund of funds had 28.8% of assets in equity hedging strategies in the second quarter, 10.3% each in commodity trading association/managed futures and in distressed and opportunities, 7.2% in global macro, 4.7% in fixed income, 4.4% in convertible arbitration, 4.2% in merger arbitration, 3.3% in equity arbitration, 1.3% in cash and 25.5% in other, undisclosed strategies.
The overall CAPS database covers 74 U.K.-based asset managers running about £393 billion ($743 billion) in pooled funds. The 18 pooled hedge funds of funds run by nine different managers in the database have £3.1 billion in assets.