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.

The fundamental value sub-index, with exposure to the U.S. consumer, industrial and technology sectors, gained 2.4% in July. Fundamental growth, with exposure to global healthcare, consumer and industrial sectors, was up 1.3%. And market neutral 1.2% gained from contributions from mean reverting, factor based strategies and fundamental managers.

The macro/CTA index posted a gain of 0.3% for July, with contributions from systematic and emerging markets managers partially offset by discretionary fixed income strategies.

The systematic diversified CTA sub-index was up 1.3% for the month as metals gained and energy fell and the U.S. dollar returned to its early July levels after intra-month highs against other major currencies.

Therelative value arbitrage index finished July up 0.8%. The biggest contribution, 2.3%, came from convertible arbitrage managers, as gains from falling yields were partially offset by declines in volatility during the month. The overall index is down 0.9% for the year to date.

The HFRX emerging markets composite index retreated from its strong 1.7% performance in June, losing 0.3% in July. The index is up 1.3% for the year to date.

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