Hedge fund managers ended the month of July down 0.38% on an equal-weighted basis, and down 0.39% on an asset-weighted basis. Investor sentiment was dampened by the spread of the highly infectious Delta variant of COVID-19, leading to concerns that the economic momentum would not be sustainable.
On a year-to-date basis, global hedge funds were up 7.76% over the first 7 months of 2021, recording the strongest July year-to-date return since 2009 despite the ongoing pandemic.
Returns were mostly negative across geographic mandates in July with European hedge funds in the lead with a return of 0.45% while North American and Asian hedge funds posted returns of -0.17% and -1.87% respectively. Across strategies, distressed debt and CTA/managed futures hedge funds outperformed their strategic peers with returns of 0.80% and 0.34% respectively throughout the month.