Hedge Fund Returns Improve in July 

Hedge fund performance improved in July to an average weighted return of 0.6%, up from 0.4% the previous month, with more than two-thirds of strategies ending the month in positive territory, according to Citco’s latest Monthly Hedge Fund Update. 

Data from the fund administrator revealed that fixed income arbitrage led the way with a 1.4% weighted average return, followed by multi-strategy and global macro. 

Asset under administration (AUA) categories were all positive in July. Funds with $1 billion to $3 billion AUA achieved the highest weighted average return of 1.1%, closely followed by funds with $200 million to $500 million with a weighted return of 0.8%, indicating solid performance among mid-sized funds. 

Hedge fund capital flows also returned to positive territory over the month with net inflows of $3.3 billion. Subscriptions reached $10 billion ahead of redemptions of $6.7 billion, taking net inflows year-to-date to $3.1 billion. 

Treasury payment volumes in July set a record with 52,650 transactions, surpassing the previous high from December 2023, signaling continued strong market activity. 

Funds in the Americas ($1.9 billion) and Europe ($1.6 billion) both saw positive net inflows in July, while Asia funds saw net outflow of $0.2 billion.