Top Hedge Fund News: July 9th – 13th

1. Hedge Funds Trail Stocks in June

  • This past week, Reuters reported that, “June hedge fund performance once again trailed the stock market, with the average hedge fund posting a gain of 0.05%.” This is a continuation of this year’s trend, and this information was obtained using the broadest industry index maintained by Hedge Fund Research.

2. Citigroup Said to Seek Money for a Hedge Fund

  • Citigroup is testing investors’ willingness to buy into a fund when the bank is not sharing any risk, as Citigroup is not planning on putting its own cash in the fund. The bank is seeking to comply with the Volcker Rule, Bloomberg News reports.

3. Investors Pull Money From Hedge Funds in June

  • Reuters has reported that, “Hedge fund flows surged to their highest level in almost three years this month.”  The data, collected from fund administrator GlobeOp, shows that investors may be losing faith in the sector after mixed performance amid current markets.

4. China Said to Grant Access to Foreign Hedge Funds

  • “China has given foreign hedge funds permission to tap its wealthy citizens inside the country for funds to invest overseas,” reports The Financial Times.

5. European Hedge Fund Sees Limited Risk in Bank Stocks

  • Bloomberg News reports, “Traders at Lansdowne Partners, the biggest European hedge fund that invests in stocks, said banks will hold their value amid Barclays’s attempted rigging of interest rates as shares already reflect bad news.”

Information obtained from New York Times.