Hedge funds returned 1.9% net of fees in July, sharply underperforming domestic and global equity indexes, according to preliminary results from the Van Global hedge fund index, which is compiled by Van Money Manager Research. For the seven months through July 31, however, the Van Global hedge fund index was up 3.5%. The only major U.S. stock index with a better return is the Russell 2000, up 4.3% for that period.
Among hedge funds, the only strategy that did not perform well in July was short selling, according to the index. Top performers were long-biased and long-short equity, which were helped by a surge in global equity markets.