The Credit Suisse/Tremont Hedge Fund Index is expected to end July up 2.35% based on 62% of assets reporting. The Hedge Fund Research series of hedge fund indexes also showed strong positive performances overall for July.

Convertible arbitrage and credit-oriented managers continuing to lead Credit Suisse/Tremont Hedge Fund Index, extending its positive performance for seven consecutive months, finishing up 5.44% in July.

A number of long/short equity managers increased their overall net exposures in July. Emerging markets managers also posted positive returns with the strategy estimated to be up 2.26% in July. Investor interest in the strategy appears to be returning along with performance.

Dedicated short bias managers continued to struggle as markets rallied. The strategy was down an estimated 8.32% in July and down 18.22% for the year.

The global macro sector registered positive performance with successful tactical trades in credit, currencies, commodities and, to a lesser extent, equities. Overall the strategy is estimated to be up 1.78% for July with a 5.23% rise year to date.

Trend followers in global macro and managed futures struggled, while high frequency traders did well.

The Hedge Fund Research family of indexes continued to show strong positive performance in July. The HFRI Fund Weighted Composite Index was up a positive 2.42% for the month and 12.17% year to date. The strongest performance was from fixed income-convertible arbitrage index, up a strong 727% for the month and an impressive 38.63% for the year.

Other strong performances were put in by quantitative directional up 5.18% for the month and 10.35 year to date while fixed income-asset backed reported a 3.40% rise in July and 13.09% for the year. Fixed income-corporate rose 3.28% in July for a 17.82% increase year to date. The Equity Hedge (Total) Index reported a 3.31% increase for July and 15.81% for the year to date.

The worst performing index was short bias, down 6.50% for the month and 15.20% for the year. The Macro Systematic Diversified Index managed to hit positive territory with only a 0.13% increase for the year but is still 2.88% down for the year

The Funds Composite Index was up 1.45% for July and 6.74% for the year.

Other strong performers year to date included the Energy/Basic Materials Index up 2.57% for the month and an impressive 23.60% for the year followed by Relative Value up 2.95% in July and 16% for the year.

The Multi-Strategy Index reported a rise of 2.94% in July (15.86% for the year), while technology/healthcare was up 1.18% for the month (13.40% year to date) and Event-Driven produced a 2.44% positive results for the month (12.55% for the year).

Credit Suisse/Tremont Hedge Fund Index strategy estimates for July 2009 (%)