Hedge fund bears thrive

Short sellers were the strongest performers in July, averaging a return of 5% for the month, according to the Nashville-based investment adviser and hedge fund information provider. Their success is not surprising, given the continuing downdraft in equity values: the S&P 500 index fell 1%, the Russell 2000 fell 5.3% and the Nasdaq index fell 6.2% in the same period.

Van said that offshore (non-US) short selling was the second most successful hedge fund strategy in July, reaping net returns of 3.3% for the month. By comparison, Morningstar’s World Equity Index fell 12.4% in the same period.

Van’s index of all US hedge fund styles fell 60 basis points in July, outperforming all the major US equity indexes except the Dow, which rose 30 basis points.

Van said that hedge funds specialising in US distressed securities investing have had the best net return so far this year, up 14.1% to end-July. The second most successful hedge funds are the offshore distressed securities investors, which were up 11.3% in the first seven months of this year.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: