Hedge funds grew against the grain in July

Mixed-chartGlobal hedge funds achieved both positive performance and net inflows in July, a month marked by a drop in equity markets.

While the MSCI World Index declined by 2.59%, Singapore-based data and research company Eurekahedge’s Hedge Fund Index registered performance of 0.44%.

Returns by region varied, Asia ex-Japan managers posting the best performance of 1.11% with long/short equity hedge funds accounting for the bulk of this. Although Australia, China and India, the largest Asia ex-Japan markets, posted declines in excess of 2%, gains were extracted through short exposures and value opportunities.

For the eighth month in a row, the global hedge fund industry’s assets under management (AuM) increased. Performance contributed $11.8bn (€8.2bn) and net flows added another $4.3bn, bringing the industry’s total AuM to $1.82trn.

©2011 funds europe