Saturday, 1 August 2015
Last updated 23 hours ago
Aug 4 2011 | 12:56pm ET
The second half of 2011 opened in pretty much the same way the first half closed: with most hedge funds in the red.
The average hedge fund fell a further 0.11% in July, extending its 2011 loss to 2.22%, according to Hedge Fund Research's HFRX Global Hedge Fund Index. Equity hedge and event-driven strategies and sub-strategies were especially hard-hit, while macro and relative value strategies offered something of a bright spot under the hot summer sun.
Macro funds, in particular, blossomed in July. The HFRX Macro Index added 1.27% while its systematic diversified benchmark soared 4.99%. Unfortunately, neither return was able to erase either strategy's considerable first-half losses; the former ended July down 0.9% for the year and the latter 1.73%.
Relative-value arbitrage funds were July's other winner, adding 0.26% (up 1.65% year-to-date). Multi-strategy relative-value arbitrage funds did even better, rising 0.58% (2.52% YTD), with only convertible arbitrage raining on the relative value parade with a 0.75% decline (up 0.88% YTD).
There was no good news anywhere else. Merger arbitrage funds dropped 0.85% on the month (up 0.23% YTD), equity hedge funds 0.84% (down 9.1% YTD), fundamental growth funds 0.71% (down 0.69% YTD) and event-driven funds 0.66% (up 0.77% YTD). Special situations funds lost 0.58% in July (up 1.65% YTD), equity market neutral funds 0.51% (up 2.2% YTD), fundamental value funds 0.44% (down 10.35% YTD) and distressed securities funds 0.42% (up 0.26% YTD).
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…