Key Takeaways
- • The Barclay Hedge Fund Index gained 1.11% in July 2017, according to BarclayHedge, and is up a cumulative 5.48% for the year to date.
- • The index has risen every month in 2017, marking a consistent run of gains across the first seven months of the year.
- • Emerging Markets led all sectors in July with a 2.65% gain, while Pacific Rim Equities posted its best performance of the year at 2.12%.
- • 16 of 17 subindices were positive in July; European Equities was the sole decliner, down 0.22%.
- • Technology (13.22%), Healthcare & Biotechnology (12.57%) and Emerging Markets (10.96%) lead year-to-date returns, while Equity Market Neutral (0.92%), Global Macro (0.94%) and Distressed Securities (1.80%) lag.
Summary
The Barclay Hedge Fund Index, compiled by BarclayHedge, rose 1.11% in July 2017, extending a run of monthly gains that has seen the index advance in every month of the year. The index is up a cumulative 5.48% for 2017 to date. The gain came as the S&P 500 and NASDAQ both reached new all-time highs during the month. Sol Waksman, founder and president of BarclayHedge, described July as "another winning month for the hedge fund industry," adding that market conditions had been "ideal for steady gains across all market segments."
Performance was broad-based. Emerging Markets led all sectors with a 2.65% gain in July, continuing a recent strong run. Pacific Rim Equities recorded its best monthly performance of the year at 2.12%, and Technology, the top-performing sector year to date, rose 1.72% in the month. Sixteen of the 17 subindices posted gains, with European Equities the only decliner, falling a slight 0.22%. Equity Market Neutral, Convertible Arbitrage, Merger Arbitrage and Multi Strategy were all positive but each gained less than 0.5%.
On a year-to-date basis, all subindices are in positive territory. Technology leads at 13.22%, followed by Healthcare & Biotechnology at 12.57% and Emerging Markets at 10.96%. At the other end, Equity Market Neutral (0.92%), Global Macro (0.94%) and Distressed Securities (1.80%) have posted the weakest returns.
Waksman characterised the month as "more of the same," noting that leading sectors remained consistent and returns were positive but "not spectacular." He concluded that 2017 has been a good year for hedge funds and that investor interest appears to be rising again.
Performance was broad-based. Emerging Markets led all sectors with a 2.65% gain in July, continuing a recent strong run. Pacific Rim Equities recorded its best monthly performance of the year at 2.12%, and Technology, the top-performing sector year to date, rose 1.72% in the month. Sixteen of the 17 subindices posted gains, with European Equities the only decliner, falling a slight 0.22%. Equity Market Neutral, Convertible Arbitrage, Merger Arbitrage and Multi Strategy were all positive but each gained less than 0.5%.
On a year-to-date basis, all subindices are in positive territory. Technology leads at 13.22%, followed by Healthcare & Biotechnology at 12.57% and Emerging Markets at 10.96%. At the other end, Equity Market Neutral (0.92%), Global Macro (0.94%) and Distressed Securities (1.80%) have posted the weakest returns.
Waksman characterised the month as "more of the same," noting that leading sectors remained consistent and returns were positive but "not spectacular." He concluded that 2017 has been a good year for hedge funds and that investor interest appears to be rising again.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.