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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...