In line with global equity and bond markets, hedge funds delivered a solid return of 1.83 per cent for July, according to the Lipper Hedge Fund Composite Index.

July’s gain contributed to a partial recovery of the negative months’ readings, bringing year-to-date performance to minus 1.76 per cent.

Fixed income arbitrage (+3.23 per cent) was the best performing strategy for the month. 

Other hedge (+3.19 per cent) was the runner-up, while dedicated short-bias (-0.75 per cent) was the worst performing strategy for the month.

Long/short equity (+2.50 per cent) and long bias (+3.12 per cent), focusing on US companies, registered a gain for July as equity markets rebounded. 

Funds focusing on European companies mainly posted solid gains as European stocks rebounded strongly in July. 

Managed futures (+1.12 per cent) ended July in positive territory as commodities continued to trade higher.