WEST PALM BEACH, FL (www.hedgeco.net) – For three straight months hedge funds achieved positive returns according to S&P Index, a hedge fund benchmark comprising of 41 funds. The latest data fromthe industry tracker however shows that Hedge Funds underperformed the S&P 500 index for the month. The S&P Hedge fund Index gained 0.98 percent in July, while the S&P 500 rose by 3.6percent during the same period.
Strong economic factors contributed to the strength shown by the S&P 500, such factors also helped hedge funds specializing in long/short equity strategies, which gained a strong 2.08 percent for the month. Non U.S. Global Equity Long/Short hedge funds gained 2.21 percent in July, while arbitrage strategies such as merger arbitrage and convertible arbitrage posted gains of 0.72 percent for the month.
The only losing strategy for the month according to S&P hedge fund index is managed futures, which lost 0.73 percent for the same period. The senior S&P hedge fund manager, Justin Dew, explained that the re-evaluation of the Chinese currency the Yuan produced temporary positive effect on the stock markets, and such tendency also benefited hedge funds as well.
There is also the impact of the stronger than anticipated second quarter earnings data, which helped the stock markets and hedge funds generally. Dew added, �Indications of a bull market continue to occur as exemplified by the current positive economic growth, increasing earnings and low inflation.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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