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Hedge fund managers down 0.27% in July

Wednesday, August 25, 2021
Opalesque Industry Update - Hedge fund managers were down 0.27% in July, trailing behind the global equity market as represented by the MSCI ACWI (Local) which gained 0.40% during the month. In terms of 2021 performance, global hedge funds were up 7.85%, recording the strongest July year-to-date return since 2009 despite the ongoing pandemic. Around 81.8% of the constituents of the Eurekahedge Hedge Fund Index generated positive returns in 2021.

On an asset-weighted basis, hedge funds were down 0.45% in July, as captured by the Eurekahedge Asset Weighted Index - USD. In terms of 2021 performance, the index is only up 3.57%, highlighting the struggles for some of the larger asset managers over the year.

The Eurekahedge North American Hedge Fund Index returned -0.23% in July, trailing behind the S&P 500 and DJIA which returned 2.27% and 1.25% respectively. In terms of 2021 performance, North American hedge funds have returned 11.01% - posting the highest 2021 YTD return among the regional indices.

The Eurekahedge European Hedge Fund Index returned 0.61% in July supported by the positive performance of the pan-European Euro Stoxx 50 which returned 0.62%. The increasing share of people fully vaccinated against COVID-19 boosted hopes that lockdowns would not be necessary despite the rising cases of the Delta variant. In terms of 2021 performance, European hedge funds have returned 6.66% - posting the second highest 2021 YTD return among the regional indices.

The Eurekahedge Asia ex Japan Hedge Fund Index returned -1.18% in July, strongly outperforming the MSCI AC Asia Pacific Ex Japan Index which returned -5.32%. Asia ex-Japan equities were negatively impacted in July after a crackdown by Chinese authorities on technology and education companies caused Chinese equities to decline sharply - the CSI 300 and Hang Seng Index posted returns of -7.90% and -9.94% respectively. In terms of 2021 performance, Asia ex-Japan hedge funds have returned 6.56% - posting the third highest 2021 YTD return among the regional indices.

The Eurekahedge Distressed Debt Hedge Fund Index gained 1.04% in July, extending their streak of consecutive positive monthly returns to ten months. In terms of 2021 performance, distressed debt hedge funds outperformed all of their main strategic peers and were up 11.45%, recording their strongest July year-to-date return since 2009.

The Eurekahedge CTA/Managed Futures Hedge Fund Index returned 0.45% in July, supported by the strong return of the S&P GSCI Index which returned 1.57%. Industrial metals was the best performing component in July, posting a return of 3.52% while precious metals posted a return of 1.81%. In terms of 2021 performance, CTA/managed futures hedge funds have returned 6.35%, underperforming the S&P GSCI Index which have returned 33.47% over the first seven months of 2021.

The Eurekahedge Event Driven Hedge Fund Index returned -0.93% in July, ending their 15-month winning streak that began in April 2020. In terms of 2021 performance, event driven hedge funds have returned 9.74% - posting the second highest 2021 YTD return among the main strategy indices.

The Eurekahedge Long Short Equities Hedge Fund Index returned -0.69% in July, ending their 9-month winning streak that began in October 2020. In terms of 2021 performance, long short equities hedge funds have returned 9.60% - posting the third highest 2021 YTD return among the main strategy indices.

Fund managers focusing on cryptocurrencies were up 9.85% in July as tracked by the Eurekahedge Crypto-Currency Hedge Fund Index, trailing behind Bitcoin which gained 14.50% over the same period. In terms of 2021 return, cryptocurrency hedge funds have gained 103.18%, outperforming Bitcoin which returned 43.06% over the first seven months of the year.

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