AI mania, financials and energy stocks boost hedge fund gains
2023.08.07 17:36
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) – Equity hedge funds ended July with gains of 7.83% so far this year, helped by technology, financials and energy stocks, data provider HFR said on Monday.
Equity strategies are leading the industry’s gains in 2023, with a 2.03% last month. Still, they lag the benchmark index , which surged 20.65% in the year through July.
All four hedge fund strategies tracked by HFR – equity, event-driven, macro and relative value – ended July with positive returns. Overall, hedge funds rose 1.51% in July and roughly 5% in the year.
Event-driven hedge funds, which include shareholder activism and those betting on mergers and acquisitions, led the industry performance in July, with 2.58% in gains. In the year, they are up 5.10%.
Macro hedge funds, which struggled in March with the banking crisis, posted gains of 0.47% last month, but in the year they are still down 0.36%.
Relative value strategies, which trade asset price asymmetries, ended July up 0.87% and 3.42% higher year-to-date.
“Powerful technology and AI trends were complemented by a strong equity beta tailwind as banks recovered from the recent volatility,” said Kenneth J. Heinz, president of HFR, in a statement.
