Hedge Funds Performing 'So-So' in June, Says CNBC's Kate Kelly
NEW YORK (TheStreet) --Hedge funds reported the latest performance industry numbers from June, and CNBC's Kate Kelly discussed the figures on "Squawk on the Street" Tuesday morning.
"They performed so-so," Kelly said, adding "with some benefiting from their Brexit position only to face losses, and others fighting negative returns the whole way. "
Third Point is leading the pack, but as Kelly noted, with less than stellar figures. They saw their June figures fractionally improve to around 1.0%, placing them at 2.6% YTD in the Flagship Partners Fund, and up 80 bps in June, and 2.1% YTD in the Offshore. Greenlight Capital, struggling to stay positive, saw a decrease in June of 0.3%, leaving them at just above 0.8% YTD.
Among the worst performers, Kelly added, Pershing Square which is in terrible shape down 3.1% in June, and 21.1% YTD, and Jana Partners down 2.1% in June and 5.8% YTD. Pershing Square, Kelly said, is in "such bad shape no thanks to Valeant Pharmaceuticals (VRX)."
She also pointed out some hedge funds that appear to do well. Among them, Caxton Global, up 2% in June, and 0.5% YTD. Another, SabaCapital, though June numbers remain unclear "did benefit from Brexit volatility, however market conditions afterwards were such that it is now down slightly from its mid-month appearance of 14%, to about 10% YTD."
Finally, Kelly commented on whether this stall in growth will lead these hedge funds to cut back on fees, "There are clamors form the average investors that there needs to be in reduction in fees, even leaving some to get out of the hedge fund business altogether as the performances have been too low. However, it remains unclear if fees will be reduced, and I'm sure hedge funds will hold the line as long as they can."