Hedge funds posted a positive return of 1.5% in June, bringing their year to-date return to 8.98%, on the back of momentum created by broad equity market indices, according to latest figures from Hennessee, the US hedge fund advisory group.

Charles Gradante, managing principal of Hennessee Group, said: "As the equity markets rallied in April, May and June on expectations of an economic turnabout, hedge funds demonstrated an ability to recognise market direction and increased their net exposure in a timely manner, thereby capturing most of the upside move in the broad markets."