Hedge funds ended their longest losing streak since 2008 with positive returns of 1.10%1 in July as managers captured gains from trends across various asset classes. July saw the first month of positive returns since February and the Eurekahedge Hedge Fund Index remained in positive territory for the year – up 2.57% July year-to-date (YTD). In comparison the MSCI World Index was up 1.05%2in July and 5.47% for the year.
Assets under management (AUM) increased by US$10.6 billion during the month, bringing the size of the industry to US$1.74 trillion. Hedge funds posted performance-based gains of US$14.8 billion with managers across all strategies posting profits for the month. The increase in assets through performance was partially offset by net negative asset flows of US$4.2 billion – making it the third consecutive month of net outflows from the industry.