Deutsche Bank has released its monthly hedge fund trends report for July, noting a slight dip in performance. The median fund lost 1.04% last month, taking global median performance down to 3.80% through the end of June.
Globally, distressed funds continue to extend their gains to 8.72% year-to-date. Equity long/short strategies also continue to perform globally (6.02% year-to-date) and regionally (with Japan long/short funds posting an impressive 16.71% YTD). Global dispersion of returns across funds remains high.
Regarding securities lending, short sellers continued to target individual companies including Research In Motion and Molycorp. Borrowing of Japanese equities has been on the rise, while Chinese banks were a short interest focus with rising concerns about the lack of transparency in the shadow banking systems, non-performing loans and rising systemic risk.
The report also posits that the increased short interest in credit ETFs and the continued underweight positioning in U.S. equities should provide a buffer for risk assets. On the other hand, rates positioning remains neutral.
Hedge Fund Performance Dips 1.04 Percent, Says Deutsche Bank Report
Deutsche Bank has released its monthly hedge fund trends report for July, noting a slight dip in performance. The median fund lost 1.04% last month, taking global median performance down to 3.80% through the end of June.