Hedge funds had negative returns in July, but continue to perform favorably against equity indices on the year, according to Greenwich Alternative Investments.

The Greenwich global hedge fund index (GGHFI) and the Greenwich composite investable index (GI2_ posted losses of 2.31% and 1.72% on the month, respectively. The S&P 500 total return index was down just 0.84% in the month, but the MSCI world equity index dropped 2.53%, and the FTSE 100 index lost 3.80%. Year-to-date, the GGHFI and GI2 have shed 3.00% and 1.82%, respectively, while equity indices have produced double digit losses.

“July highlights several popular hedge fund trades unwinding in a short period of time. While hedge funds as a group clearly had a weak month, their year-to-date returns still greatly outpace traditional long-only investment vehicles,” notes Margaret Gilbert, managing director.