Investing August 16, 2002

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.
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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.

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