Hedge funds saw net inflows of US$5.8 billion in July, which were more than offset by negative returns across the industry. The Eurekahedge Hedge Fund Index shed 2.2%1 on the month, against a backdrop of persistent volatility in the underlying markets. The month saw marked reversals across some key asset classes – commodity prices fell significantly (the Dow Jones-AIG Commodity Index lost 12%, on the month) primarily on concerns of falling demand, while equities rebounded from their intra-month lows (of -5.6% for the MSCI World Index) to close the month down 2.5%.
