Most hedge fund strategies posted negative returns in July, according to the EDHEC Alternative Index.
Only three strategies out of 13 ventured out of negative territory short selling, 0.7%; merger arbitrage, 0.27%; and fixed-income arbitrage, zero.
The worst-performing strategy for July was CTA global with -3.38%. It was the lowest return for that strategy in three years and was largely due to the considerable decrease in commodity prices, EDHEC said in a news release. CTA global still had a year-to-date return of 9% and an annual average return since January 2001 of 8.2%.
Other strategies with positive returns year to date included short selling, 12.8%; equity market neutral, 1.8%; global macro, 1.1%; and merger arbitrage 0.9%.
The lowest performing strategies year to date were emerging markets, -8.7%; and convertible arbitrage, -5%.