The Lyxor Hedge Fund Index was up 0.8 per cent in July, with seven out of 10 Lyxor indices ending the month in the black, according to the firm’s latest Alternative Investment Industry Barometer.

The rally in global markets fuelled the most directional strategies, with special situations and L/S equity long bias managers leading the pack.
 
“The post-Brexit market rally in July fuelled directional hedge fund strategies such as L/S equity and event-driven. Yet, the near term outlook remains challenging as economic activity is weak and traditional asset classes are richly valued. Hence, we maintain a preference for hedge fund strategies with a relative value bias,” says Philippe Ferreira (pictured), senior cross-asset strategist, Lyxor Asset Management.