BarclayHedge Index Up 3.11% In July

Aug 18 2009 | 4:47am ET

Hedge funds rose 3.11% in July, their fifth consecutive month of gains, according to BarclayHedge.

The Barclay Hedge Fund Index has returned 16.23% during its winning streak, and is now up in excess of 14% on the year. Convertible arbitrage funds remained hot, adding 6.99% on the month to reach 35.38% on the year, by far the best performance of 2009 to date. Emerging markets funds also did extremely well, returning 5.52% in July (28.23% year-to-date), as did equity long-bias (5.34% in July, 18.37% YTD) and event-driven (4.46%, 18.37% YTD).

Funds of hedge funds rose a more modest 1.51% on the month (5.84% YTD).

All told, 16 of the 18 BarclayHedge indices were in the black last month.

“During July, we continued to see improving liquidity, a tightening of credit spreads and a decrease in risk-aversion among investors,” BarclayHedge founder Sol Waksman said. “These trends provided support for a continuation of the rallies in global equity and credit markets.”

Equity short-bias funds lost a lot of ground in July, no surprise given the market rally that swamped even the best hedge fund strategies of the month. Short-sellers lost 8.08%, extending their year-to-date losses to 13.22%. Equity market-neutral funds were also burned by the hot stock market and shed 0.14% (down 0.67% YTD).

Still, the outlook is bright for an industry facing a bleak future just months ago.

“If current trends continue, most of last year’s losses will soon be recouped by diversified hedge fund investors who stayed the course,” Waksman said.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...