Hedge funds posted positive returns in June with distressed funds leading the way, according to latest figures from CSFB/Tremont, the index provider.

The index was up 0.83% for the month across all hedge fund strategies. Oliver Schupp, president of the CSFB/Tremont index, said: "The stock market rally through the early part of June, another rate cut by the Federal Reserve and general optimism about the global economy led hedge funds higher in June.