Greater China-focused hedge funds were the star performers during July, returning 3.82% following an overall disappointing start to the year. In contrast, Asian ex-Japan hedge funds gained 2.63% and global hedge funds saw a negative return of 0.12% last month, according to data released by hedge fund tracker Eurekahedge.
The out-performance of Asia- and Greater China-focused hedge funds were driven by strong markets and healthy macro-economic numbers from China.
Emerging markets-focused hedge funds in general posted their sixth consecutive month of gains, up 1% in July and returned 4.08% year-to-date.
European hedge fund managers posted losses of 1.12%, with worries about Portugal’s banking sector and low levels of inflationary pressure in the Eurozone further depressing sentiment in the region.
North American hedge funds dipped 0.67% as underlying equity markets saw steep declines towards the month end, and the S&P500, NASDAQ and Down Jones Industrial Average Index finishing the month down 1.51%, 0.87% and 1.56% respectively.
Latin American hedge funds produced their sixth consecutive month of positive returns amid a strong showing in Brazilian equity, gaining 0.65% during the month and 3.50% year-to-date.
On a year-to-date basis, hedge funds are up 3.71%, slightly ahead of underlying markets as the MSCI World Index has returned 3.40% over the same period.