Hedge funds entered the third quarter with a robust performance, according to Hedge Fund Research, as global financial markets extended their recovery from the U.K.’s June 23 Brexit vote, the U.S. delivered a strong employment report and the Federal Reserve held off on raising interest rates.
The HFRX Global Hedge Fund Index gained 1.5% in July and is up 0.6% year to date.
Event-driven managers turned in the month’s best performance, gaining 2.4%, and have the best year-to-date return, up 5.7%.
The distressed sub-index posted a 3.7% return for the month and 11.4% for the year, on the strength of exposure to the basic materials, consumer and financial sectors.
The special situations sub-index gained 2%, and merger arbitrage was up 0.3%.
The equity hedge index recouped for a 1.5% loss in June, gaining 2% for July. Year to date, the index is down 2%, and it’s down 6.2% for the past 12 months.