FAIRFIELD, Iowa, August 7, 2007 – Despite concerns over losses in the sub-prime mortgage industry, hedge funds gained 0.62% in July, according to flash estimates from the Barclay Hedge Fund Index.
“There have been some well-publicized losses among a few high-profile funds that invest in sub-prime mortgages,” says Sol Waksman, founder and president of The Barclay Group.
“Those losses highlighted weaknesses in the fixed income sector and sparked a wave of selling in equity markets that sent stock prices into the loss column for July.”
Eleven of Barclay's 18 hedge fund indexes gained ground in July. The Equity Short Bias Index jumped 6.56%, Emerging Markets rose 3.19%, Pacific Rim Equities gained 1.67% and Technology was up 1.66%.
“Although we're seeing more hedge fund losses this month, the bottom line is that the overall hedge fund index and fund of funds index are positive once again. Except for the handful of funds that blew up, the sky is not falling," says Waksman.
All of Barclay's 18 hedge fund indexes are up for the year, ranging from a 2.12% gain for the Equity Short Bias Index to a 16.46% gain for the Emerging Markets Index. After seven months, the Barclay Hedge Fund Index has returned 8.05%.
“This is the 13th consecutive profitable month for hedge funds. However, the ratio of winners to losers this month has dropped to 55/45 versus approximately 80/20 for the first six months of the year,” says Waksman.
Six sectors lost ground in July. The Healthcare and Biotechnology Index fell 2.48%, Merger Arbitrage lost 1.59%, and the Event Driven Index was down 0.66%.
Click here to view ten years of Barclay Hedge Fund Index data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For more commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com
The Barclay Group, founded in 1985, actively tracks more than 6,300 hedge funds and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize Barclay’s indexes as performance benchmarks for the hedge fund and managed futures industries.
trong>Institutional investors, brokerage firms and private banks worldwide utilize Barclay’s indexes as performance benchmarks for the hedge fund and managed futures industries.