Hedge funds avoided most of the stock market’s losses in July, but still suffered their third straight losing month.
The average hedge fund dropped 0.22% last month, according to the Hennessee Group. By contrast, the Standard & Poor’s 500 Index fell 2.15%.
Through the first half, the Hennessee Hedge Fund Index was up 1.45%.
“With defensive positioning and low exposures, hedge funds were able to protect capital as the equity markets sold off in July amid concerns about economic growth and the political standoff around the U.S. debt ceiling,” Hennessee’s Charles Gradante told Dow Jones Newswires.