Hedge funds up 2.76 per cent in July, says Backstop BarclayHedge

The hedge fund industry turned in a fourth consecutive positive month in July as stock markets’ continued strong performance contributed to a 2.76 per cent return, according to the Barclay Hedge Fund Index, compiled by BarclayHedge, a division of Backstop Solutions. 

By comparison, the S&P 500 Total Return Index was up 5.64 per cent in July and closed at an all-time month-end high.

Year-to-date, the hedge fund industry moved back into the black, up 0.07 per cent. The S&P 500 Total Return Index was up 2.39 per cent over the same period.

Every hedge fund sector tracked by the Barclay Hedge Fund Indices was in positive territory for July.

“Despite grim reminders in July that much work remains to overcome the Covid-19 pandemic both from a health and an economic perspective, markets took heart in surprising June job figures and remained hopeful of another round of government stimulus,” says Sol Waksman, president of BarclayHedge. “Coupled with expectations that central banks will continue to do what’s necessary to support economic recovery, many investors were optimistic that the recovery will come sooner than previously expected.”

The Emerging Markets Asian Equities Index set the pace among hedge fund sectors in July with a 5.74 per cent return. Other gainers included the Emerging Markets Latin American Equities Index, up 5.70 per cent, the Pacific Rim Equities Index, returning 5.57 per cent and the Emerging Markets MENA Index, up 5.53 per cent.

For the year-to-date, hedge fund sectors were split between gainers and losers. Sectors in positive territory included the Technology Index, up 13.60 per cent, the Volatility Trading Index, returning 11.99 per cent, the Emerging Markets Global Fixed Income Index, up 10.62 per cent, the Fixed Income Arbitrage Index, gaining 7.21 per cent, and the Emerging Markets Asia Index, returning 5.53 per cent.

Sectors in the red for the year included the Emerging Markets Latin American Equities Index, off 12.95 per cent, the Emerging Markets Eastern European Equities Index, losing 7.97 per cent, the Emerging Markets MENA Index, down 7.19 per cent, the Emerging Markets Global Equities Index, down 6.93 per cent, and the Pacific Rim Equities Index, off 4.40 per cent.