New York (HedgeCo.Net) \u2013\u00a0New York, NY \u2013 Hennessee Group LLC announced today that the Hennessee Hedge Fund Index\u00a0gained +1.82% in\u00a0July (+6.91% YTD),\u00a0whilethe S&P 500\u00a0gained +4.95% (+18.20% YTD), the Dow Jones\u00a0Industrial\u00a0Average\u00a0increased +3.96% (+18.28% YTD), and the NASDAQ Composite Index\u00a0rose +6.56% (+20.10% YTD).\u00a0 Bonds were also positive on the month, as the Barclays Aggregate Bond Index gained +0.14% (-2.31% YTD).<\/p>\n
\u201cSeveral managers were encouraged to see that $60 billion was redeemed from bond mutual funds in June, with most of it going to savings.\u201d <\/b>commented <\/b>Charles Gradante, Co-Founder of Hennessee Group. \u201cThat money is building on the sidelines representing new future demand for equities.<\/b>\u201d<\/b><\/p>\n
Equity long\/short hedge funds were positive in July, as the Hennessee Long\/Short Equity Index gained +2.95% (+11.22% YTD). <\/b>\u00a0The best performing sectors were health care (+7.09%), industrials (+5.60%), and materials (+5.51%).\u00a0 The underperforming sectors were telecommunication services (-0.74%), consumer staples (+3.88%) and information technology (+4.10%).\u00a0\u00a0 The risk-on sentiment was back in play as investors reacted to increased M&A activity and positive earnings reports.\u00a0 Short portfolios experienced considerable losses as markets rebounded significantly in July.<\/p>\n
\u201cThe VIX says it all\u201d <\/b>noted Charles Gradante.\u00a0 \u201cIt started the month around 17 and steadily declined to 12 as of July 26th<\/sup>.\u201d<\/b><\/p>\n The Hennessee Arbitrage\/Event Driven Index advanced +1.01% in July (+5.82% YTD). <\/b>\u00a0The Barclays Aggregate Bond Index rose +0.14% (-2.31% YTD) as interest rates increased in July.\u00a0 High yield also rose as the Merrill Lynch High Yield Master II Index increased +1.88% (+3.41% YTD).\u00a0 High yield spreads narrowed roughly 50 basis points to end the month 471 basis points over treasuries as investors\u2019 fears over near term stimulus reduction calmed.\u00a0 The Hennessee Distressed Index added +1.39% in July (+8.31% YTD)<\/b>.\u00a0 Distressed portfolios were positively affected by both a narrowing of credit spreads and strong equity markets.\u00a0 The Hennessee Merger Arbitrage Index gained +1.66% in <\/b>July (+5.23% YTD).\u00a0 <\/b>Managers posted gains as deal spreads narrowed and M&A activity increased through activist, special situation and strategic transactions.\u00a0 The Hennessee Convertible Arbitrage Index returned +0.11% in July<\/b> (+3.93% YTD).\u00a0 <\/b>Convertible arbitrage managers experienced gains amid tighter credit spreads and stronger equity markets.<\/p>\n \u201cThe Fed came close to the tapering-cliff\u2019s edge and backed away,\u201d<\/b> added Dean Rubino, President of Terrapin Asset Management, LLC.\u00a0 \u201cAnd so, under the auspices of just-bad-enough economic data, the asset purchases continue and the market rally goes on.\u201d<\/b><\/p>\n The Hennessee Global\/Macro Index advanced +0.66% in July (1.64% YTD)<\/b>.\u00a0 The MSCI EAFE Index gained +5.24% (+7.53% YTD).\u00a0 The Hennessee International Index gained +0.65% (+3.86%).<\/b>\u00a0 Emerging markets were also positive, as the MSCI Emerging Market Index rose +0.77% (-10.20% YTD), while, the Hennessee Emerging Market Index rose +1.87% (+3.42% YTD).<\/b>\u00a0 The Hennessee Macro Index increased +0.34% for the month of July (-1.73% YTD).<\/b><\/p>\n \u201cOne Manager who just returned from China has widened his concerns over a credit crisis in China.\u00a0 The manager reported that many banks are offering \u2018wealth management\u2019 products promising high interest rates, but often without much, if any, disclosure about how the deposit will be invested.\u00a0 The manager also reported that people think everything is backed by the government, stating \u2018as long as the Communist Party remains in power, these products are safe,\u2019\u201d <\/b>said Charles Gradante.<\/p>\n Fixed income managers had mixed results in July as bond yields increased for the month with the 10-Year U.S. Treasury ending the month at 2.60%.\u00a0 Commodities managed strong gains in the \u201crisk on\u201d environment.\u00a0 The U.S. Dollar extended gains that started in mid June through the early portion of July, however, only to end the month -1.90% lower versus the Euro and -1.03% lower versus the Yen.\u00a0 Gold and silver both reversed course, gaining +7.33% and +0.89% for July, respectively.\u00a0 Crude oil continued higher, gaining +8.91% for the month while natural gas continued to shed its gains from earlier in the year, falling +3.18% for July.<\/p>\n Editing by Alex Akesson New York (HedgeCo.Net) \u2013\u00a0New York, NY \u2013 Hennessee Group LLC announced today that the Hennessee Hedge Fund Index\u00a0gained +1.82% in\u00a0July (+6.91% YTD),\u00a0whilethe S&P 500\u00a0gained +4.95% (+18.20% YTD), the Dow Jones\u00a0Industrial\u00a0Average\u00a0increased +3.96% (+18.28% YTD), and the NASDAQ Composite Index\u00a0rose +6.56% (+20.10% […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-37349","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/37349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=37349"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/37349\/revisions"}],"predecessor-version":[{"id":37351,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/37349\/revisions\/37351"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=37349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=37349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=37349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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