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August 4, 2006
July: was it up or down for hedge funds?
Depending on which index you follow, July could have been either good or bad.
Dow Jones Hedge Fund Benchmarks Index reports that five of six strategies were in positive ground as the month ended, while Hedge Fund Research’s investable index was reportedly in worse shape in July than in June.
According to Financial News, about two-thirds of HFs reporting to one investor were negative by mid-July, with managed-futures funds the big loser. Prime brokers, says FN, are bracing for a third consecutive down month, with long/short equity funds off 1% and global macros down 2%, and bankers are predicting that three negative months is no charm and will result in a slowdown of flows into hedge funds. On the other hand, Dow Jones’ index found convertible arbitrage rose 1.1%, merger arbitrage up 1%, distressed securities increasing 1%, event driven up 0.2% and equity market neutral climbing 1.4%, while long/short equity continued its downward spiral, losing 1.2%, bringing its year-to-date return to a paltry 0.2%.
-Institutional Investor-
Posted by su at August 4, 2006 11:27 AM