Barclay Hedge Fund Index Down 1.99% in July
Hedge funds declined 1.99% in July according to the Barclay Hedge Fund Index compiled by BarclayHedge. Year-to-date, the index is down 4.44%. “Hedge funds had another difficult month in July,” says Sol Waksman, founder and president of BarclayHedge. “Stagnation in Europe, increasing risk of recession in Japan, and on-going mortgage problems in the U.S. drove equity prices lower and high yield credit spreads higher.” Overall, 16 of Barclay’s 18 hedge fund indices lost ground in July. The Equity Long Bias Index fell 2.92%, Distressed Securities lost 2.79%, Emerging Markets dropped 2.58%, and the Technology Index was down 2.46%. “Losses were widespread throughout most hedge fund sectors,” adds Waksman. “The number of losing hedge funds outpaced winners by a three to one margin in July.” However, Barclay’s Equity Short Bias Index rose another 0.89% in July, and is now up 17.38% in 2008. The Barclay Fund of Funds Index lost 2.57% in July.