Hedge Funds Keep Falling in July

August 16, 2002 (PLANSPONSOR.com) - Hedge funds' July performance was in the minus column, but it continued to outdistance the performance record of major US equity indexes, according to Van Hedge Fund Advisors International, Inc.

Van Hedge reported that the Average US Hedge Fund fell -3.0%, net of fees in July, while the Average Offshore Hedge Fund lost -2.3% net.

Stocks fared far worse, with major indices hitting levels unseen since 1997 and 1998, Van Hedge said. The S&P 500 lost -7.8% in July and the NASDAQ plunged -9.2%. The Average Equity Mutual Fund fell -8.9%.

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For the second month in a row, the three most successful hedge fund strategies were:

  • US Short Selling, 7.4%
  • Offshore Short Selling, 6.7%
  • Offshore Income, 1.2%.

Those strategies also hold the same rankings for the year to date through July with US Short Selling up 27.1% net, Offshore Short Selling up 23.2% net, and Offshore Income up 8.4% net.

For the year to date through July, the Average U.S. Hedge Fund and Average Offshore Hedge Fund have returned -3.0% and -1.7%, respectively.

July’s figures follow a 2.2% net loss in June.