Hedge fund managers produced a second quarter of positive aggregate performance in 2019 with the HFRI Fund Weighted Composite index returning 2.02% in the quarter ended June 30, trailing the 2.59% return of the HFRI Asset Weighted Composite index over the same period.
While positive, the second-quarter performance of both indexes trailed first-quarter 2019 returns of 5.45% for the fund-weighted composite index and 3% for the asset-weighted index, data released Monday by index creator Hedge Fund Research showed.
In the fourth quarter of 2018, the fund-weighted composite index was down 6.01% and the asset-weighted composite index was down 2.38%.
Both indexes produced an 0.86% return in the second quarter of 2018.
HFR's hedge fund index returns year-to-date June 30 were strongly positive with the HFRI Fund Weighted Composite index returning 7.58% and the HFRI Asset Weighted Composite, 5.67%.
In contrast, returns of each hedge fund index were negative for the 12 months ended Dec. 31, 2018, with the fund-weighted composite down 4.75% and the asset-weighted composite index down 0.68%.
By hedge fund strategy, the HFRI Macro (Total) index produced the highest return in the quarter ended June 30 at 2.89%, followed by the HFRI Event-Driven (Total) index, 1.86%; the HFRI Relative Value (Total) index, 1.77%; and the HFRI Equity Hedge (Total) index, 1.73%.
"Hedge funds posted broad-based gains" to produce a strong first half year in 2019, said Kenneth J. Heinz, HFR's president, in a news release accompanying the firm's performance report.
"It is likely that the W-shaped equity market pattern will continue throughout (the second half of 2019) with funds tactically positioned to benefit from opportunities presented," Mr. Heinz added.