Emerging Markets, Macro Funds Battered In July

Aug 19 2008 | 9:59am ET

As with most hedge fund indices in July, Hedge Fund Research’s HFRI Indices offer very little in the way of good news.

The overall HFRI Fund Weighted Composite Index fell 2.17% last month and is down 3.43% on the year. Just five HFRI substrategies were in the black in July, and just seven have positive returns in what has been a very bleak year-to-date.

Macro funds lost 2.78% on the month (up 3.71% year-to-date) and equity hedge funds declines 2.63% (down 6.29% YTD). Event-driven funds fell by 1.33% (down 3.61% YTD) and relative-value funds by 0.36% (down 1.72% YTD). Emerging markets funds continued to have difficulty in 2008, falling by 3.07% in July to bring their year-to-date loss to 9.76%.

Among substrategies, energy and basic materials funds were the biggest losers with an average decline of 6.97% (down 3.58% YTD), followed by systematic diversified funds, which fell 3.9%, but remain the year’s second-best performer with year-to-date return of 7.65%. Russia and Eastern Europe was the worst-performing region among emerging markets, with a 7.05% drop (down 10.69% YTD).

The only strategies in the black in July were fixed-income asset-backed relative value funds (up 1.31% in July, up 3.22% YTD), yield alternatives funds (up 0.55%, down 2.55% YTD), merger arbitrage funds (up 0.37%, down 0.22% YTD), private issue/Regulation D funds (up 0.29%, up 1.14% YTD) and short bias funds (up 0.07%, up 10% YTD).

Funds of hedge funds fell 2.73%, and are now down 5.03%, according the HFRI Fund of Funds Composite Index.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...