Hedge funds administered by asset servicer Citco posted modest gains in July, with a weighted average return of 0.5%. A majority of funds (55.9%) ended the month in positive territory.
Investor sentiment remained supportive, with net inflows of $10.3bn, showed Citco’s data.
Event driven strategies led the month with weighted average returns of 2.7%, while fixed income arbitrage and global macro delivered 1.4% and 1.3% respectively. Equities returned 0.6%, multi-strategy was broadly flat at 0.1% and commodities lagged at -1.7%.
Hedge funds build on strong first-half momentum
On an assets under administration basis, by fund size, $1bn–$3bn managers topped the board for the second consecutive month with a 1.1% return, while sub-$200m funds gained 0.2% and $200–$500m funds posted a -0.1% loss.
Capital flows were active in July, as $16.4bn of subscriptions outpaced $6.1bn of redemptions, resulting in $10.3bn of net inflows. Multi-strategy funds got the lion’s share, gaining $8.9bn and lifting year-to-date inflows for the strategy to $25.3bn.
Larger managers dominated flows, with funds over $10bn pulling in $6.9bn of net subscriptions. By geography, European funds led July activity with $5.1bn of inflows, followed by $4.8bn in the Americas and $0.4bn in Asia.
