Hedge funds likely lost about 2.6% in July, according to the latest version of the Credit Suisse/Tremont Hedge Fund Index.

“We estimate the Credit Suisse/Tremont Hedge Fund Index will finish down 2.61% for July,” said Oliver Schupp, president of Credit Suisse Index Co., Inc. “While the largest losses occurred in the managed futures sector, down 4.20%, dedicated short managers were well positioned to profit from equity market downturns and gained 2.98% for the month.”

Schupp added, “Despite July’s negative performance, hedge funds historically outperform the broader equity markets in periods of downturn, and we expect that they will continue to weather the current market conditions successfully.”

The Credit Suisse/Tremont Hedge Fund Index is comprised of 499 funds as of July 31. The index is constructed from a database of more than 5,000 hedge funds, including both open and closed funds located in the U.S. and offshore, but it does not include fund of funds.