Printer Friendly

Hedge Funds Gain 1.5% in July: HFR.

Byline: Michael S. Fischer

Hedge funds entered the third quarter with a robust performance, according to Hedge Fund Research, as global financial markets extended their recovery from the U.K.'s June 23 Brexit vote, the U.S. delivered a strong employment report and the Federal Reserve held off on raising interest rates.

The HFRX Global Hedge Fund Index gained 1.5% in July and is up 0.6% year to date.

Event-driven managers turned in the month's best performance, gaining 2.4%, and have the best year-to-date return, up 5.7%.

The distressed sub-index posted a 3.7% return for the month and 11.4% for the year, on the strength of exposure to the basic materials, consumer and financial sectors.

The special situations sub-index gained 2%, and merger arbitrage was up 0.3%.

The equity hedge index recouped for a 1.5% loss in June, gaining 2% for July. Year to date, the index is down 2%, and it's down 6.2% for the past 12 months.

The fundamental value sub-index, with exposure to the U.S. consumer, industrial and technology sectors, gained 2.4% in July. Fundamental growth, with exposure to global healthcare, consumer and industrial sectors, was up 1.3%. And market neutral 1.2% gained from contributions from mean reverting, factor based strategies and fundamental managers.

The macro/CTA index posted a gain of 0.3% for July, with contributions from systematic and emerging markets managers partially offset by discretionary fixed income strategies.

The systematic diversified CTA sub-index was up 1.3% for the month as metals gained and energy fell and the U.S. dollar returned to its early July levels after intra-month highs against other major currencies.

Therelative value arbitrage index finished July up 0.8%. The biggest contribution, 2.3%, came from convertible arbitrage managers, as gains from falling yields were partially offset by declines in volatility during the month. The overall index is down 0.9% for the year to date.

The HFRX emerging markets composite index retreated from its strong 1.7% performance in June, losing 0.3% in July. The index is up 1.3% for the year to date.

--- Check out College Endowments Seen Posting Worst Returns Since 2009 on ThinkAdvisor.

No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Date:Aug 4, 2016
Previous Article:10 Best States for Paying Off Student Debt.
Next Article:What Is Fiduciary Investment Advice Under DOL Fiduciary Rule?

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters