Hedge Funds Back to Black in July, Finds Eurekahedge Survey

Hedge funds around the world bounced back from losses in June to post gains in July, as funds tracked by the Eurekahedge Hedge Fund Index rose 1.02% over the month. Although the index was in positive territory, the MSCI World Index, which tracks equities, fared even better with a 4.83% gain in July.

Year-to-date, single manager hedge funds are up 3.54%, while funds of hedge funds have done better, posting a 3.83% gain so far this year.

Regionally, the Eurekahedge Asia ex Japan Hedge Fund Index posted the highest monthly gain, 1.93%, beating the MSCI Asia ex-Japan Index’s 1.84% improvement. Japanese hedge funds had lower returns than funds in other regions, rising 0.93%, but these gains came during a month that saw Japanese exchanges in slightly negative territory.

In North America, hedge funds rose 1.44% during the month as the S&P500 gained nearly 5%. European hedge funds also were in the black in July, rising 1.34% with European exchanges also having a strong month.

Total assets under management (AUM) for hedge funds worldwide rose $15.1 billion in July, due to $10.1 billion in gains and $5 billion in net positive asset flows. European funds attracted the highest amount of inflows regionally, adding net $3.6 billion, the eighth positive month in a row. Asia and Latin America, however, had slight outflows in July. Overall, the industry’s total AUM now sits at $1.89 trillion.