Hedge Funds Post Best Monthly Gain in July Since End of 2016

(Bloomberg) -- Hedge funds in July reported their best monthly returns since the end of 2016, boosted by equity and event-driven strategies.

Funds on average gained 1.1 percent, according to Hedge Fund Research Inc.'s asset weighted composite index. Technology-focused equity funds had the best July of any sub-strategy tracked by HFR, returning 2.3 percent.

The performance last month has pushed hedge fund returns in 2017 to 3.7 percent, compared with 10 percent for the S&P 500 Index. Amid the ongoing shift from active to passive investments, firms have struggled to attract investors and have only recently seen inflows return.

July marked a turnaround from the previous month, when hedge funds lost 0.24 percent, weighed down by macro and event-based strategies.

To contact the reporter on this story: Ivan Levingston in Boston at ilevingston@bloomberg.net.

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Alan Mirabella, Vincent Bielski