Hedge funds a bit higher in July

FWR Staff

15 August 2005

Tech funds, a weak strategy for the year to date, led the way. Hedge funds saw an average month-over-month increase of 1.74% in July, according to HedgeFund.net, whose PerTrac Universes track the performance of the 4,900 or so hedge funds that report to HedgeFund.net's website. Meanwhile the S&P 500, a broad gauge of U.S. equity performance, was up 3.60% last month.

The top 25% of hedge funds had an average gain of 2.90%. The bottom 25% increased 0.39%. (Please see charts below.)

Technology-sector funds, which had dragged earlier in the year, were Julyï¿½s top strategy, with an average increase of 4.20%. Short-bias funds saw the biggest losses, shedding 3.16%.

The year-to-date average gain for hedge funds was 3.52% at the end of July. The S&P 500 was up 1.84% for the calendar year through July. Year to date, the top 25% of hedge funds were up 6.67% by the end of July, while the bottom 25% was up 0.24%.

HedgeFund.net's PerTrac Universes are part of PerTrac Online, an analytics tool for HedgeFund.net subscribers. –FWR

Top strategies Strategy July mean Year-to-date mean Technology sector 4.20% -0.06% Value 3.84% 6.09% Long/Short equity 2.62% 5.17% Source: HedgeFund.net.

Bottom strategies Strategy July mean Year-to-date mean Short bias -3.16% 3.82% CTA/Managed futures 0.21% -1.48% Fund of funds - market neutral 0.57% 2.54%Source: HedgeFund.net.

Selected strategy details, July 2005 Strategy 25th percentile 50th percentile Mean 75th percentile All funds 2.90% 1.32% 1.74% 0.39% Convertible arbitrage 2.62% 1.36% 2.31% 0.71% CTA/Managed futures 1.47% 0.15% 0.21% -1.70% Distressed 2.90% 2.00% 2.08% 1.14% Emerging markets 2.81% 1.13% 1.19% -0.28% Event driven 3.40% 1.98% 2.18% 1.26% Fixed income (non-arbitrage) 2.03% 0.87% 0.79% 0.05% Fixed Income arbitrage 1.75% 0.60% 1.01% 0.35% Fund of funds - market neutral 1.07% 0.80% 0.57% -0.29% Fund of funds - multi-strategy 1.92% 1.18% 1.36% 0.75% Fund of funds - single strategy 2.64% 1.20% 1.62% 0.78% Long/Short equity 4.16% 2.60% 2.62% 0.88% Macro 2.40% 1.09% 1.48% 0.36% Market neutral equity 1.75% 0.58% 0.95% -0.10% Merger/Risk arbitrage 1.48% 1.23% 1.22% 0.92% Short bias -0.13% -5.55% -3.16% -5.67% Technology sector 6.74% 3.81% 4.20% 1.78% Value 4.62% 2.41% 3.84% 1.45%Source: HedgeFund.net.

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