Hedge funds post 1.65% gain in July on stock market rally

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Hedge funds post 1.65% gain in July on stock market rally

Hedge Fund Research President Kenneth J. Heinz participates in a panel discussion at the Skybridge Alternatives Conference in Las Vegas.

NEW YORK - Hedge funds posted a 1.65% gain in July, due to a stock market rally which helped reduce their losses for the year to date, data provider HFR said on Friday.

As powerful risk-on sentiment drove a reversal of equity markets, hedge funds posted the strongest gains in 15 months, while the US Federal Reserve raised interest rates in an effort to slow generational inflation, said Kenneth J. Heinz, President of HFR.

The fund's weighted composite index showed that hedge funds were down 4.1% for the year to date.

Equity hedge funds posted gains of 2.89%, underperforming the S&P 500, which went up 9.11% last month. Equity hedge funds were down 9.2% for the year.

Macro hedge funds, which trade a wide range of assets, such as bonds, currencies, rates, stocks and commodities, were down 1.07%, their third consecutive month of losses. They were the best performing category in the year, with gains of 7.36%.

Heinz said fund managers have positioned funds to preserve capital and take advantage of sudden shifts in macroeconomic conditions.