Hedge funds declined 0.78% in July, according to the Morgan Stanley Capital Investments Hedge Fund Composite Index.
The MSCI Hedge Fund Database has grown to more than 1,800 hedge funds and more than 190 indexes representing more than $240 billion of assets. More than 98% of the funds in the database reported their performance for July's compilation. The equal-weighted index was released Tuesday.
MSCI Specialist Credit IndexSM was the top-performing process group in the month, returning 0.36%. It has had only one down month since October 2002. July brought the group's year-to-date, one-year, and three-year returns above all other process groups.
MSCI Security Selection Index fell 1.58% as equity markets declined last month. Short-bias hedge funds contributed positively, returning 3%, but long-bias funds declined 2.15%.
Hedge funds investing in various geographical regions all turned negative after all having risen in June. The worst performer was MSCI Hedge Fund Japan Index, down 1.72%. But the Japan index is up 12.65% for the year.
