Hedge funds across the world posted their largest loss for 12 months in June, as heightened fears of slowing growth in China and the tapering of the Federal Reserve's bond buying program hit performance, new research has found.
Total assets under management declined by $21 billion over the month to $1.89 trillion, according to hedge fund database Eurekahedge. This decline was mostly a result of poor performance, with managers losing a total of $18.84 billion in June.
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As a result, the the Eurekahedge Hedge Fund Index slipped 0.69 percent in June, ending a 7 month winning streak.
Fixed income and North American hedge funds both suffered their largest performance-based decline in almost two years, according to the report, with North American funds experiencing their first month of negative flows this year. Europe, Latin America and Asia ex-Japan hedge funds also saw outflows over the month.
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