Hedge funds gained 0.66 per cent in June, according to the Hedge Fund Index compiled by US-based BarclayHedge. The index is up 2.39 per cent year to date.

“The ECB’s month-end agreement to make loans directly to eurozone banks added fuel to the rally and propelled the S&P 500 to its largest single day gain this year, demonstrating yet again that Europe’s financial woes continue to be a major determinant of hedge fund and equity market performance,” said Sol Waksman, founder and president of BarclayHedge.

The index has gained ground in four of the first six months of 2012, mirroring the largely positive performance of equity markets.

Overall, 13 of BarclayHedge’s 18 hedge fund indices saw positive returns in June. The Healthcare & Biotechnology Index gained 2.57 per cent, Equity Long Bias was up 1.63 per cent, Merger Arbitrage gained 0.69 per cent, the Convertible Arbitrage Index rose 0.66 per cent and Pacific Rim Equities added 0.62 per cent.

On the losing side, the Barclay Equity Short Bias Index dropped 1.95 per cent in June, following a 9.03 per cent gain in May. The Technology Index was down 0.52 per cent in June.

The Equity Short Bias Index is the only losing hedge fund strategy in 2012, down 9.80 per cent year to date.