The Morningstar MSCI Composite AW Hedge Fund Index decreased 0.3 per cent in July, but is up 3.4 per cent for the year through July.
Despite declines in the Ukraine, Middle East, and South America, the emerging-markets rebound continued for the fifth straight month in July, buoyed by strong performance in Chinese equities. The Morningstar MSCI Emerging Markets Hedge Fund Index rose 0.4 per cent in July, which brought its year-to-date increase to 4.5 per cent.
In aggregate, single-strategy hedge fund assets in Morningstar’s database grew by a meagre USD92 million in June.
Systematic futures hedge funds continued to see outflows, losing USD569 million in June and USD2.1 billion through the first half of the year.
Long/short debt hedge funds experienced the greatest inflows in June, USD399 million, as investors sought alternatives to the interest-rate risk of high-duration bonds.
