A pair of hedge fund indices show a slightly positive return for July, with individual strategy subindices being quite a mixed bag.
HedgeFund.net’s HFN Hedge Fund Aggregate Index rose 0.29% last month, and the Hennessee Hedge Fund Index 0.33%, bucking the sinking equities market and the sub-prime minefield. The Standard & Poor’s 500 fell 3.13% and is up just 3.33% year-to-date, compared to 8.96% for the Hennessee index and 7.65% for HFN.
“Thus far, it has been a good year for hedge funds as a whole, despite the collapse of several funds focused on fixed-income,” the Hennessee Group’s E. Lee Hennessee said. “The increase in equity market volatility has been welcomed by short sellers, who have had a tough time over the past four years.”
Short-biased, macro and non-U.S. funds were the place to be in July: Hennessee’s Short-Biased Index was the strongest on the month, rising 3.51% (0.87% YTD). The other three indices above 3% in July all covered hedge funds investing on farther shores: Asia-Pacific was up 3.19% (14.81% YTD), emerging markets 3.03% (11.31% YTD) and Latin America 3.01% (20.66% YTD, tops among the Hennessee indices). For its part, HFN has Asia up 2.23% (12.48% YTD), Latin America 2.49% (19.81% YTD) and Europe up 0.18% (7.91% YTD, though Hennessee’s Europe Index fell 1.06% on the month to 11.31% YTD).
Big losers included healthcare and biotech (Hennessee: down 2.82% in July, up 6.27% YTD), distressed (Hennessee: down 0.8%, up 8.89% YTD; HFN: down 2.21%, up 5.74% YTD) and CTA/managed futures (HFN: down 1.42%, up 3.11% YTD).