After a highly-mixed second quarter, hedge funds have gotten off on the right foot in the third.
The average hedge fund rose 0.56% in the first two weeks of July, according to the HFRX Global Hedge Fund Index. The gain pushes the benchmark to 1.79% for the year.
All but three of the strategies and sub-strategies tracked by Hedge Fund Research's HFRX suite were up through July 16, led by systematic diversified commodity trading advisors, which added 2.92% (down 1.84% year-to-date) and the broader macro/CTA index, which returned 1.76% (down 0.07% YTD). The market directional and multi-region indices were both up 1.46% (the former 0.3% YTD, the latter 3.31% YTD).
Convertible arbitrage funds rose an average of 0.9% in early July (4.91% YTD), equity market neutral funds 0.76% (down 4.24% YTD), fundamental value funds 0.67% (2.13% YTD), distressed restructuring funds 0.5% (3.56% YTD) and equity hedge funds 0.39% (1.58% YTD).
Relative value arbitrage funds added 0.3% (2.44% YTD), multi-strategy funds 0.2% (2.26% YTD) and merger arbitrage funds 0.02% (1.01% YTD).
The two-week losers were fundamental growth funds, down 0.67% (up 1.75% YTD); special situations funds, down 0.22% (up 0.76% YTD); and event-driven funds, down 0.02% (up 2.97% YTD).