Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling.
Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent this year, according to a letter sent to investors, a copy of which was obtained by Bloomberg News. David Einhorn’s main hedge fund at Greenlight Capital fell 4.3 percent in the month, bringing year-to-date losses to 3 percent.
Tumbling stock markets in June curtailed the best start to a year for hedge funds since the financial crisis in 2008. In Europe, the STOXX Europe 50 index posted its biggest monthly drop in two years as Greece and its creditors wrestled over terms of the nation’s bailout program. Chinese equities slumped on concern valuations have reached unsustainable levels.
Greece shut lenders and imposed capital controls on Monday after Prime Minister Alexis Tsipras called for a referendum on austerity for June 5. An index that tracks computer-driven funds and macro funds, which place wagers on broad economic trends, fell 2 percent that day, the most since August 2007.
Hedge funds on average fell 1.2 percent last month, curbing year-to-date profits to 1.3 percent, according to the HFRX Global Hedge Fund Index.
In addition to European stocks, Winton said it lost money on its bets against the euro and corn. The $32 billion firm, founded by David Harding, uses computer algorithms to determine how it trades. Alexandra Rhys-Jones, a spokeswoman for the London-based firm, declined to comment.
“We worry that further de-risking by macro/CTA funds could weigh on markets as risks remain,” Barclays Plc analyst Keith Parker wrote in a note yesterday.
Dan Loeb’s Third Point Offshore Fund lost 0.8 percent in June, according to the firm’s website. The fund is up 4.9 percent in the first half of the year.
Och-Ziff Capital Management Group’s main fund lost 0.5 percent in June, trimming yearly gains to 4.1 percent.
A few funds managed to buck the money-losing trend for the month. The $18.5 billion Lansdowne Partners gained 2.9 percent in June in its main fund, bringing year-to-date gains to 4.6 percent, according to an investor. Tremblant Capital gained 1.4 percent in the month and is up 7.5 percent for the year, and Reade Griffith’s Polygon European Equity Opportunity Fund climbed 1.7 percent in June and 9.6 percent this year, according to people familiar with the firms.
Spokesmen for the hedge funds declined to comment on performance.