Though July may be considered disappointing, hedge funds have managed to prosper despite the euro zone crisis.
Last month’s gains, though meager in comparison to predictions, were driven by three different trades- oil, the euro, and surprisingly, Facebook shares.
According to a statement from the SS&C GlobeOp Hedge Fund Performance Index, the firm gained 1.42% in July. This year’s returns have reached 5.74% so far.
SS&C Technologies’ Bill Stone explained that funds have benefited from both long and short bets.
“Credit funds have done pretty well in August. Oil bounced around and funds have done pretty well on both sides of that trade. In currencies the euro and the Canadian dollar have been good spots to be.
“In stocks the biggest things that have helped long funds have been in the technology sector- Apple and Google continue to be strong and on the short side an awful lot of people made money on Facebook.”
SS&C GlobeOp added that the reports reveal that hedge funds have gained in every month of 2012 thus far.
Reuters.com explains:
“The ability to make money in all market conditions was once widely seen as the preservative of the hedge fund industry, although losses during the credit crisis has changed that view.”