Hedge funds slip in July

Date: Tuesday, August 8, 2006
Author: Advisor.ca

Hedge fund performance was pretty much flat in July, with the Barclay Hedge Fund Index slipping 0.07%. Most of the loss was attributed to getting overall market direction wrong.

"Once again, we're seeing equity-based directional strategies spilling most of the red ink," said Sol Waksman, founder and president of The Barclay Group. "Share prices dropped during the first half of July, but by the end of the month rallied back to where they had started."

Half of the 18 indices Barclay tracks fell, with technology funds dropping 1.39%, the global macro index falling 1.36%, and long-bias equity hedge funds losing 1.2%. The short-bias index posted the best performance, gaining 2.84%.

Despite losing 2.29% during the past three months, the Barclay Hedge Fund Index is still up 5.57% for 2006.