A 2 percent average return on investments in July helped North American hedge funds to their best month since March, according to Hedgefund.net, which publishes several indexes tracking the industry.
Fairfield County contains one of the world”™s largest concentrations of hedge funds, and one of the world”™s largest in Westport-based Bridgewater Associates.
Some $9.3 billion flowed into hedge funds globally on a net basis in July, according to Hedgefund.net, following a net outflow in June.
For the year to date, about 675 North American hedge funds are up nearly 3 percent on average according to Hedge Fund.net.
Among niche categories globally, hedge funds that focus in technology investments fared best with a 5.5 percent return, followed by long-only hedge funds at 5.2 percent focusing on long-term investments. That still trailed the S&P 500 stock index of major companies published by Standard & Poor”™s, which rose 7 percent in July.
Short-bias hedge funds ”“ those that profit as prices of securities drop ”“ got clobbered with a negative 4.7 percent performance.
Hedge fund trading volumes
Hedge funds are quickly regaining some of the clout they lost during the market collapse starting in 2009, according to a new report by Greenwich Associates.
While overall U.S. fixed-income trading volume declined between this year and last, hedge fund trading volumes jumped 36 percent among a matched sample of institutions, the Stamford-based market-research firm found. If far from the dominant force they were in 2006 and 2007, they remain key players in U.S. fixed-income markets, Greenwich Associates added.
Atlantic Asset Management
With two Kansas companies, Atlantic Asset Management L.L.C. reportedly is creating a joint venture that will invest in new hedge funds.
Stamford-based Atlantic manages more than $6 billion in investments for pensions, unions, foundations and other institutional investors.
According to Pensions and Investments, Atlantic, Montage Asset Management and Palmer Square Capital Management are looking to invest between $25 million and $50 million in individual funds, targeting managers that have worked at other hedge funds or investment banks.
