Hedge funds post positive returns
Hedge funds have continued their erratic performance in 2009, with initial reports indicating the sector is up 2.1 per cent in July, according to Eurekahedge data.
Hedge funds slipped into negative territory in June after achieving positive returns of more than 3 per cent in May.
Strong rallies in equity markets and a rise of 8.4 per cent in the MSCI world index contributed to the returns in the sector. Nearly all regions reported positive growth close to or more than 2 per cent, with the exception of Japan, where underperforming equity markets caused low gains of 0.3 per cent.
Event-driven hedge funds were the best performing sector during the month, posting 4.79 per cent. The sector is up more than 23 per cent over the year.
Emerging market funds reached 3.9 per cent in July, while relative value and long short equity funds reached 3.16 and 3.1 per cent respectively.
However, managed futures have continued to stall in negative territory, posting their seventh consecutive negative return at 0.01 per cent in July.
Assets have continued to flow into the sector for the third consecutive month, reaching US$1 billion, while funds gained US$7 billion in trading.
AUTHOR
Benjamin Levy
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