Hedge Funds were up 0.44%1 in July as the managers provided downturn protection to their portfolios in a month that saw global equity markets decline. The MSCI World Index dropped 2.59% as risk appetite waned across high yielding assets. Investors however increased allocation to hedge funds as $4.34 billion of net inflows were recorded for the industry. This is the eighth consecutive month of positive net flows in the year, making 2011 one of the strongest years on record in terms of capital allocation to hedge funds.
Highlights of hedge fund performance and asset flows for the month are as follows:
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Footnote
1Based on 82.02% of funds which have reported July-2011 returns as at 23-August-2011
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