The Eurekahedge Hedge Fund Index gained 1.3 per cent in July, recording its highest monthly return since April 2021 after three consecutive months of decline, totalling 4.1 per cent in Q2. Despite the July rebound, global hedge funds remained down 4.0 per cent YTD.
Among strategies, long/short equity recorded the highest return of 2.2 per cent, supported by the improvement in risk sentiment due to the strong rebound of the global equity market.
Relative value (1.6 per cent) and multi-strategy (1.6 per cent) also rebounded in July, following three consecutive months of decline, totalling 4.0 per cent and 3.4 per cent, respectively, in Q2.
CTA/managed futures (6.5 per cent) is the only top-level strategy with a positive return YTD. By contrast, long/short equities (-7.3 per cent), fixed income (-4.1 per cent) and event-driven (-5.1 per cent) remain firmly in the red as risk aversion remains high amid continued macroeconomic uncertainty.
Returns were varied across sub-strategies in July, with long-bias (4.2 per cent), AI (1.3 per cent) and FX (0.1 per cent) recording positive returns while the remaining strategies declined. Trend-following recorded the steepest decline of 4.2 per cent in July but remains the top-performing sub-strategy YTD.
Positive returns were reported across most investment regions in July, with Asia the only exception as it declined 0.5 per cent. North America was the best-performing region with gains of 2.5 per cent in July.
Funds focused on North America (2.5 per cent) and Europe (1.3 per cent) recovered in July following declines of 5.9 per cent and 4.5 per cent, respectively, in Q2. North American and European hedge funds have pared YTD losses to 5.1 per cent and 7.0 per cent, respectively.
