Hedge funds post first monthly loss in three months as July inflows reach $12bn
Hedge funds suffered their first monthly loss since the start of the second quarter in July, with weakness in equity and fixed-income arbitrage strategies dragging the industry’s weighted average return down 0.8%, according to Citco’s latest monthly hedge fund update.
In July, hedge funds experienced their first monthly loss since the beginning of the second quarter, with a decline in the industry's weighted average return by 0.8%, according to Citco's latest update. Following three months of gains, the decline came as equity and fixed-income arbitrage strategies underperformed, falling 2.7% and 1.2% respectively.
Despite this setback, half of the funds still managed to generate positive returns, and the year-to-date return remained at 9.7%, close to double digits. Equity strategies were the weakest performers, while commodities led with a 5% return. Funds of various sizes also saw varying declines, with smaller funds (-1.6%) suffering the most significant loss, followed by mid-sized funds (-1.2%) and large funds (-0.7%).
Despite the performance dip, investors continued to show confidence, as hedge funds attracted $12bn in net inflows, marking seven consecutive months of inflows. Multistrategy funds led the fundraising efforts, bringing in $5.3bn in July, and their cumulative inflows for the year reached $49.2bn.
Written by urgent.news from Hedgeweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
