Greenwich: Hedge Funds Slip In July

Aug 8 2008 | 8:56am ET

Hedge funds tracked by Greenwich Alternative Investments fell again in July, but continue to perform favorably when compared to equity indices on the year.

The Greenwich Global Hedge Fund Index (“GGHFI”) and the Greenwich Composite Investable Index (“GI2”) posted losses of -2.31% and -1.72% on the month, respectively. This compares similarly to returns in the S&P 500 Total Return (-0.84%), MSCI World Equity (-2.53%), and FTSE 100 (-3.80%) equity indices. Year-to-date, the GGHFI and the GI2 have shed -3.00% and -1.82%, respectively, while equity indices have produced double digit losses for the year. 32% of constituent funds in the GGHFI ended the month with gains.

“July’s results highlight several popular hedge fund trades unwinding in a short period of time,” said Margaret Gilbert, managing director. “While hedge funds as a group clearly had a weak month, their year-to-date returns still greatly outpace traditional long-only investment vehicles.”

Market Neutral Group managers were the strongest performers in July, posting a loss of -0.88%.

Merger Arbitrage and Statistical Arbitrage funds lead the group with positive returns of +0.59% and +0.85%.

Convertible Arbitrage funds were the weakest within the group as managers saw spreads decrease. 

Directional Trading Group funds experienced their largest decline so far this year primarily due to weakness among CTA/Futures managers who shed -3.22% on average. 

Long/Short Equity Group funds also suffered as Growth and Value managers posted declines of -3.31% and -2.32%, respectively.

Short Sellers added to their significant year-to-date gains by returning +0.30% on the month. 

Finally, Specialty Strategy Group managers exhibited the weakest returns among hedge funds for the second month in a row, returning -3.01%. 

Emerging Market funds once again posted the greatest losses as they declined in step with global equity bourses.

The GGHFI currently includes 1066 constituent funds. Final index results for July will be available early August, once additional funds have submitted returns. The GI2, comprising 46 constituent funds, adds investability and is designed to track the GGHFI. It references actual hedge fund vehicles as opposed to separately managed accounts or other methods used in an attempt to replicate the returns of hedge fund vehicles. 


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

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

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 
Error

FINalternatives Trending

From the current issue of