Hedge funds reversed three consecutive months of losses in June – although the average fund still underperformed both stocks and bonds for the first half of this year.

Hedge funds made a small gain of 0.05% last month, which took the performance of the first half of the year to 1.7%, according to data provider Hedge Fund Research. This was below stock and bond benchmarks. The S&P500 Index (with dividends) was up 9.48%, while the Barclays Capital Government/Credit Bond Index was up 2.79%.