Hedge funds plunged a record 7.9% in the first half of the year as the coronavirus pandemic roiled markets

Carmen Reinicke

July 9, 2020 2:13 PM

Hedge funds lost a record 7.9% on an asset-weighted basis in the year's first half, according to data from Hedge Fund Research.

None of the hedge funds' four major strategies made money in the first six months of 2020, the report showed.
Markets suffered a meltdown in March as the coronavirus pandemic panicked investors. Since, however, equities have recovered most of the losses.
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Hedge funds got slammed in the first half of the year as global markets suffered a major rout due to the coronavirus pandemic.

On an asset-weighted basis, hedge funds lost a record 7.9% in the first half of 2020, data from Hedge Fund Research showed. In the same timeframe, the S&P 500 index shed about 4%.

In addition, none of the four major investing strategies used by hedge funds made any money in the first six months. of the year, according to the report. Event-driven funds fell 9.6%, the worst of all the groups. The smallest decline was by relative-value funds, which lost 5.1%

The coronavirus pandemic roiled global markets in March, sending the S&P 500 tumbling and ending the longest-ever bull market . Since, however, equities have come roaring back now, the S&P 500 is up 39% from its March lows and is near where it started the year.

In June, the S&P 500 posted its best quarterly performance since 1998, gaining 1.8%. In the same month, hedge funds declined slightly, losing 0.4%, Hedge Fund Research data showed.

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