Managed Futures Performance

Managed Futures Funds

NEW YORK, July 15, 2005 (Reuters) - Hedge funds that bet on a strong dollar and rising oil prices turned in the best returns among any hedging investment category in June, a leading hedge fund tracking service reported on Friday.

Long positions in European stocks and gains in emerging market positions also helped push the CSFB/Tremont Hedge Fund Index up 1.31 percent in June. The monthly gain pushed the index's year-to-date performance to 1.34 percent.

"Managed Futures were the highest performing strategy again, returning 4.22 percent in June, as primarily medium-term reversion models tended to generate profits from the strength of the U.S. dollar and rising oil prices," said Robert I. Schulman, chief executive of Tremont Capital Management Inc.

Hedge funds outperformed equity markets in June, despite an overall difficult trading environment and performance generally not meeting investor expectations, Schulman said in a statement.

Oliver Schupp, president of Credit Suisse First Boston Tremont Index LLC, said that rallying European equity markets and tightening credit markets provided strong results in the Long/Short Equity and Event Driven sectors. The two sectors also provided a strong finish for the year's first half, he said.

The Convertible Arbitrage strategy recovered from recent difficult markets, posting a 0.96 percent return in June, and its first positive month this year, Schupp said.

Performance for the CSFB/Tremont Hedge Fund Index and its 10 sub strategies is calculated monthly.