Preqin data reveals that hedge funds recovered from negative performance in June, with encouraging July performance across almost all benchmarks. July returns of 1.64% represent the best month for hedge funds since January and strong returns have wiped out the losses incurred in June, taking year-to-date returns to 5.39%.
Most single-manager strategy benchmarks produced positive returns in July, with event driven and long/short funds leading the way with returns of 2.06% and 2.05% respectively. North America was the best performing region during the month, posting returns of 2.73%.
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Other Key Facts:
- ?CTAs continue to struggle, posting negative returns (-0.75%) for the third consecutive month.
- ?Event driven remains the best performing strategy category in 2013, with further positive returns of 2.06% in July, taking the strategy to year-to-date returns of 9.06%.
- ?Funds of hedge funds continue to exhibit dampened returns compared to the overall hedge fund benchmark with 0.86% returns in July. Long/short funds of hedge funds returned 1.70%.
- Long/short UCITS hedge funds had an impressive July, outperforming the overall long/short benchmark with returns of 2.50%. The overall UCITS index fell narrowly short of the overall hedge fund benchmark with monthly returns of 1.52%.
- ?North America was the best performing regional benchmark in July (+2.73%) followed by Europe (+1.90%), with both regions outperforming Asia-Pacific (+1.81%) for the third consecutive month.
- 70% of investors believe that the cumulative hedge fund returns for 2013 will be between 7-10%.
- The most common estimate of cumulative hedge fund returns for 2013 among investors was 9-10%, with 37% of investors expecting returns in this range.
- ?The majority of investors (56%) expect North America to be the best performing region in 2013.
Amy Bensted, head of hedge funds products at Preqin, said: "Hedge funds posted positive returns across all regions and strategies in July to provide a boost to the industry following negative June returns, which ended hedge funds’ 12 month positive returns streak. Event driven hedge funds continue to lead the way with 2.06% July returns taking year-to-date returns to 9.06%, whilst long/short funds also had an impressive July with returns of 2.05%.
"North America has overtaken Asia-Pacific as the best performing region in 2013, topping the regional July performance with returns of 2.73%, bringing North America fund performance to 9.53% YTD versus 9.20% in Asia-Pacific. Investors have picked up on this strong run and are predicting North American funds will perform the best over 2013. All other benchmarks delivered positive returns in July, except for CTAs, which recorded negative performance for the third consecutive month."
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