Hedge funds gain 1.59% in July

Hedge funds enjoyed their highest returns in four months in July, according to the Dow Jones Credit Suisse Hedge Fund Index.

The index rose 1.59% in July, pushing the year to date gain to 2.22%. Eight of the 10 strategies it tracks were also up during the month, led by emerging markets, up 3.5%, and long/short equity which gained 2.5%. Convertible arbitrage was a close third with a 2.2% monthly gain.

Dedicated short strategies and managed futures were the two categories posting negative monthly returns.

Year to date, fixed income arbitrage is the leading strategy, up almost 7%, followed by convertible arbitrage and global macro strategies.