NEW YORK (HedgeWorld.com)–Hedge funds were up 0.08% in July, according to Credit Suisse First Boston Tremont* Index LLC’s CSFB/Tremont Hedge Fund Index.

That’s not to say that it was a triumphant month for most hedge fund managers, as five of the 10 hedge fund style categories had negative returns for the month. Still, most managers remained positive for the year, with only dedicated short-bias managers taking a big hit falling 21.14% for the year through July 31.

Distressed managers did the best for the month, up 1.14%. The strategy is also the leading performer for the year returning 15.41% through July 31. Overall, the event-driven sector, which includes distressed, lead the way in returns during July, with a positive 0.95% return. Other event-driven strategies such as event-driven multi-strategy and risk arbitrage did well, too, returning 0.81% and 0.48% respectively for the month.

Equity market neutral managers also reported positive performance of 0.68% for the month and were up 3.87% for the year through July. And while emerging markets had only slightly lower performance for the month (up 0.56%), those managers are up 13.68% and are the second best performing strategy for the year-to-date.

Multi-strategy managers and long/short equity managers had similar performance of only faintly positive numbers of 0.34% and 0.27%, respectively for the month. For the year to date, multi-strategy funds still had better performance returning 7.51% vs. long/short equity funds gain of 7.48%.

Convertible arbitrage, dedicated short bias, fixed-income arbitrage, managed futures managers all had negative performance in July. The worst performing strategy for the month was managed futures, which lost 2.75% in July, but still was up 7.47% for the year-to-date. Dedicated short bias lost 2.06% in July and has lost a whopping 21.14% for the year.

The CSFB/Tremont Hedge Fund Index has returned 168.47% since its inception in January 1994. The index is comprised of 448 funds in July and is up from 421 funds in June.

Phoenix Global Fund Ltd. was dropped due to liquidation, and 31 funds were added. Funds added were: Symphony Rhapsody; Bear Stearns Global Convertible Fund; Plexus Fund Ltd.; Kodiak Capital; Symphony Overture; Okumus Market Neutral Fund Ltd.; Avenue International; Avenue Asia; Mariner Fund; Castlerigg International Ltd.; Quadrangle Debt Recovery Fund; Contrarian Capital Fund I LP; Mellon HBV Rediscovered Opportunities Fund; Para Fund; Obsidian Fund; FrontPoint Fixed Income Arbitrage; ACM High Grade Strategy; MKP Opportunity Offshore Ltd.; Brevan Howard Fund Ltd.; Chilton International BVI Ltd.; Epoch Master Fund Ltd.; Ascend Partners; Handelsbanken’s Hedgfond Aktie Europa; Scinto Financial Services; Artis Technology Fund; AlphaGen Volantis; Pioneer Long/Short European Equity; JWH Global Strategies; Graham Global Investment Fund (Fed Policy); Nextar and Equity Opportunities Ltd.

*Tremont Capital Management Inc., Rye, N.Y., is a strategic partner of and a minority investor in HedgeWorld.

SBarreto@HedgeWorld.com