A snapshot of performance across a range of strategies in the world's multi-trillion hedge fund sector shows July was a positive year overall, with areas such as tech and financials doing particularly well.

Hedge funds extended their June performance surge through July, new industry figures show. Gains were led by the technology, artificial intelligence and growth equity categories.

The shareholder activist, financials and commodity sub-strategies also aided the hedge fund sector’s performance because many US companies posted better-than-expected earnings, according to Hedge Fund Research.

The investible HFRI 500 Fund Weighted Composite Index advanced 1.7 per cent (estimated) in July, following the strongest monthly gain  in June since February 2021. The HFRI Fund Weighted Composite Index® (FWC) also advanced in July, gaining an estimated 1.5 per cent, similarly driven by event-driven and equity hedge strategies.

Event-driven strategies, which often focus on out-of-favor, deep value equity exposures and speculation on M&A situations, led strategy gains in July.

The investible HFRI 500 Event-Driven Index jumped 2.9 per cent (estimated) for the month, while the HFRI Event-Driven (Total) Index added 2.6 per cent. 

Equity hedge funds, which invest long and short across specialized sub-strategies, also drove industry-wide gains in July, driven by technology, growth and AI exposures, which were complemented by gains in energy and financials. The HFRI 500 Equity Hedge (Total) Index surged 2.7 per cent in July, while the HFRI Equity Hedge (Total) Index advanced 2 per cent for the month. 

Fixed income-based, interest rate-sensitive strategies also advanced in July, as the Federal Reserve raised interest rates and inflationary pressures eased, while regional banking volatility subsided. The HFRI 500 Relative Value Index gained an estimated 1 per cent for the month.