The hedge fund industry turned in a fourth consecutive positive month in July as stock markets’ continued strong performance contributed to a 2.76% 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% 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%. The S&P 500 Total Return Index was up 2.39% 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,” said 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% return. Other gainers included the Emerging Markets Latin American Equities Index, up 5.70%, the Pacific Rim Equities Index, returning 5.57% and the Emerging Markets MENA Index, up 5.53%.
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%, the Volatility Trading Index, returning 11.99%, the Emerging Markets Global Fixed Income Index, up 10.62%, the Fixed Income Arbitrage Index, gaining 7.21%, and the Emerging Markets Asia Index, returning 5.53%.
Sectors in the red for the year included the Emerging Markets Latin American Equities Index, off 12.95%, the Emerging Markets Eastern European Equities Index, losing 7.97%, the Emerging Markets MENA Index, down 7.19%, the Emerging Markets Global Equities Index, down 6.93%, and the Pacific Rim Equities Index, off 4.40%.
For a complete table of BarclayHedge Hedge Fund and Sub-Index results for July, as well as historical returns, click here.
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Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.
BarclayHedge, a division of Backstop, currently maintains data on more than 7,100 hedge funds, funds of funds and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.
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