WEST PALM BEACH, FL (www.hedgeco.net) – Global Hedge funds gained from the advancing equity markets in July, according to new data released on Monday by Hennessee Group LLC. The managers tracked byHennessee reported an average of 2.35% in July compared with 1.64% in June. The results are based on an analysis of over 800 funds included in the index. The new data pushes the year-to-date returnof the index to 3.61 percent. The Dow Jones Industrial Average is down by comparison and the NASDAQ and S&P are up 0.4 percent and 2.87 percent respectively.
Hedge funds started the year with poor results, posting negative numbers for the first three months of the year. The second quarter results for hedge funds continue to show improving strength, helping to push the average return of most hedge fund tracking firms into the positive territory.
Charles Gradante, managing principal of Hennessee Group said, “As the cost of money goes up, the willingness to take risks goes down and equity stock-picking and most arbitrage strategies become less speculative and more fundamentally driven.� Gradante also said such scenario plays to the strength of hedge fund managers because the difficulty index for them rises when many pile into a market which is driven by momentum rather than market fundamentals.
Hennessee long/short equity index was up 2.91% in July, as those managers continue to increase exposure. Merger arbitrage managers did well for the month as well, the strategy is recovering from the problems of the past several months. The arbitrage/event driven index gained 1.59% as spreads have tightened, in addition to increasing activities in merger and acquisition sector.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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