Hedge funds post positive results

The Hennessee Group, a New York-based investment adviser that consults hedge fund investors and monitors hedge fund managers, reported a return of 0.49% for hedge funds in June, bringing the 2004 year-to-date (YTD) return to 2.28% for the Hennessee Hedge Fund Index.

The Hennessee Latin American Index was the top-performing index in June, with a return of 2.18%, compared with a 6.29% drop in April. This still leaves the index with a –3.68% return YTD. Second best was the Hennessee Distressed Index, with 2.10% for June and +7.12% YTD.

The worst-performing strategy was the Hennessee Convertible Arbitrage Index, with a 1.42% decrease for June, bringing the YTD performance of the index into negative territory at –0.49%. Hennessee expressed surprise at the relative performance of the index, saying it couldn’t remember it ever happening before.

The overall positive returns for hedge funds come as good news after a volatile year so far. SG Hambros, the private banking arm of French bank Société Générale, reported most fund of funds posting flat returns or losses for April and May.