June Gains of Global Hedge Funds Attributed to Artificial Intelligence: Report
According to data provider HFR, hedge funds worldwide experienced a 2.2% increase in June, driven by the rise of artificial intelligence-related stocks and the alleviation of the banking crisis. Throughout the first half of the year, hedge funds managed to generate a 3.45% return for their investors.
“Hedge funds grew in June due to growth stocks and especially artificial intelligence. While these dynamic exposures led to gains, industry performance was strong across the board,” said Kenneth J. Heinz, President of HFR.
Equity hedge funds, whose stocks are falling or rising, were the best performers of all four categories tracked by HFR for both June and the year, with gains of 2.94 percent and 5.55 percent.
However, equity funds lagged the S&P 500, which gained 16.9% in the first half of 2023.
Macro hedge funds fell 0.47 percent in 2010 in June as they were able to erase some of the losses earlier in the year last month, up 1.47 percent. The start of the year was challenging for hedge funds that rely on cyclical development, as they suffered from the March banking crisis.
Event-driven hedge funds, which include shareholder activism and bets on mergers and acquisitions, rose 2.99% in the first half of the year and 2.78% in June.
Relative value strategies, which trade on asset price dispersion, rose 2.66% for the year and 0.9% for the month in June.
