The hedge fund sector has showed signs of recovery in recent weeks, following a couple of difficult months.
In its latest Monthly Hedge Fund Trends, Deutsche Bank reports that the median fund gained 0.93% in July. These gains brought the global cumulative median fund performance to 4.85%.
Equity long/short strategies continued to outperform others.
European long/short strategies, for example, were up 8.17% for the year-to-date in July; those investing in the US gained 9.21% and those in Japan 17.21%.
Data provider Eurekahedge reports similar performance results for July. Its Eurekahedge Hedge Fund Index is up 1.02% for the month, with 70% of reporting funds delivering positive returns.
All major hedge fund investment regions – the US, Europe and Asia – saw positive returns during the month, led by the Eurekahedge Asia ex Japan Hedge Fund Index, which at 1.93% posted the strongest gains amongst all regional mandates.
“July witnessed rallies in global markets, which overcame the speculation about the slowdown in the US Federal Reserve's bond-buying programme,” Eurekahedge says.
Despite the recent up-tick in performance, the returns of the hedge fund sector as a whole look meager compared to the 4.83% rise in the MSCI World Index.
Eurekahedge tracks more than 550 funds that have delivered over 15%, 300 funds that are up more than 20% and 100 funds by more than 30%.
Assets under management of hedge funds worldwide who reported, rose by $15.1 billion (€11.3 billion) in July to $1.89 trillion.
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