Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index will post positive performance of 1.67 per cent in July.
This brings the year-to-date performance of the index to 2.32 per cent.
Long/short equity hedge funds experienced a positive month, gaining 2.82 per cent as directional net-long managers performed positively in the beta-driven environment which was boosted by positive second quarter corporate earnings reports and upbeat sentiment following Eurozone banks stress test results.
Global macro hedge fund managers struggled early in the month but recovered in the second half to finish the month up 0.66 per cent as managers capitalised on foreign exchange movements and benefited from positive commodities performance, particularly in wheat, coffee and industrial metals.
Managed futures finished down 1.49 per cent as many trend followers were caught with long positions in US dollars, gold or short wheat.
Estimates are based on 76 per cent of assets of hedge fund index components reporting; final July performance will be published on 16 August.
