Hedge funds gained 1.73 per cent in July, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
The index is up 5.86 per cent year to date.
The Barclay Hedge Fund Index now has gains in six out of seven months in 2013 and positive returns in 13 of the past 14 months of trading.
“Tapering fears receded in July as the Fed and the ECB maintained their accommodative posture, helping equity and bond markets to rebound from June’s losses,” says Sol Waksman, founder and president of BarclayHedge. “Positive economic news in the US and Europe bolstered investor confidence and helped to boost the MSCI World Index to a gain of more than five per cent.”
All but one of Barclay’s 18 hedge fund strategies gained ground in July. The Barclay Healthcare & Biotechnology Index jumped 4.22 per cent, Equity Long Bias gained 3.53 per cent, the Technology Index was up 3.47 per cent, Equity Long/Short gained 1.93 per cent, and Distressed Securities added 1.78 per cent.
The Equity Short Bias Index dropped another 4.50 per cent in July. Equity Short Bias has five months of losses this year, and is down 19.59 per cent after seven months in 2013. At this point, Short Bias is on track to surpass its record loss of 24.12 per cent logged in 2012.
Four hedge fund strategies have recorded double-digit returns thus far in 2013. Healthcare & Biotechnology has gained 15.70 per cent year to date, Pacific Rim Equities are up 13.76 per cent, the Equity Long Bias Index has gained 12.26 per cent, and Distressed Securities are up 10.01 per cent.
The Barclay Fund of Funds Index was up 0.95 per cent in July and has gained 4.25 per cent year to date.