HFRX Global Hedge Fund Index Up +1% In July, +3.51% YTD

Aug 2 2017 | 10:53pm ET

Hedge funds posted gains in July as global equity markets gained, the U.S. dollar fell and oil recovered some of its 2017 declines, according to an update from Hedge Fund Research.

The company’s HFRX Global Hedge Fund Index gained 0.93% for the month, bringing its year-to-date return to 3.51%. Meanwhile, HFR’s HFRX Absolute Return, HFRX Equal Weighted Strategies, and HFRX Market Directional indexes rose +0.48%, 0.72% and 0.97%, respectively.

All four of HFR’s main strategy subindexes were positive for the period. Key highlights:

  • The HFRX Event Driven Index posted a gain of +1.00% in July from gains in Special Situations equity and Distressed/Restructuring managers. The HFRX Special Situations Index gained +1.21% for the period from core positioning in Altaba/Yahoo, Alibaba, Mobileye, Alere, Time Warner and Monsanto. The HFRX Distressed Index posted a gain of +0.51% from exposure to the U.S. Financial, Communications and Industrial sectors. The HFRX Merger Arbitrage Index posted a modest -0.11% decline for the period.
  • The HFRX Macro/CTA Index returned +0.94% for the month from gains in systematic trend-following managers and Emerging Markets strategies. The HFRX Systematic Diversified Index posted a gain of +1.63% with the USD declining against most currencies while gaining against the Swiss Franc, as Oil surged and Precious Metal gained and Agriculturals traded in a wide margin. The HFRX Emerging Markets Index posted a gain of +0.57% from exposure to the Emerging Asia and Latin America regions. 
  • The HFRX Relative Value Arbitrage Index rose +0.91% for the period, driven by gains in Global Credit, Convertible Arbitrage managers and Yield Alternative – Energy Infrastructure strategies. The HFRX RV: Multi-Strategy Index and the HFRX Fixed Income – Credit Index posted a gain of +0.92% and +0.76%, respectively, from gains in Global Fixed Income and MBS strategies. The HFRX Convertible Arbitrage Index gained +0.86% for the period, as yields were little changed while volatility remained suppressed. The HFRX MLP Index also rose for the month gaining +0.80% for the period. 
  • The HFRX Equity Hedge Index gained +0.87% for July as global equity markets rose. The HFRX Fundamental Growth Index increased +0.97% for the month on gains in exposure to Emerging Markets with concentration in Asia ex Japan, and Global Healthcare strategies. The HFRX Fundamental Value Index posted a gain of +0.86% for the period from exposure to European and US large-cap in the Consumer, Financial and Communications sectors. The HFRX Market Neutral Index gained +0.51% from mixed performance in mean reverting, factor based strategies and fundamental managers. 

Established in 1992, HFR is a global leader in specializing in the indexation and analysis of hedge funds. The company produces the HFRI, HFRX and HFRU Indices, industry benchmarks for global hedge fund performance, and calculates more than 100 indices ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...