Hedge fund index falls

The Hennessee Hedge Fund Index slipped 1.95% last month and was down 3.23% for the year-to-date. The index, compiled monthly by hedge fund adviser Hennessee Group LLC of New York, posted weaker results last month than major market indicators. The Standard & Poor's 500 stock index was down 0.99%, the Dow Jones Industrial Average was up 0.25% and the Nasdaq Composite Index rose 1.42%. “Hedge funds underperformed in July due to sharp reversals in the equity markets during the second half of the month,” Lee Hennessee, managing principal at the Hennessee Group LLC, said in a statement. Meanwhile, the Hennessee Long/Short Equity Index declined 1.31% last month and was down 2.89% for the year-to-date. The Global/Macro Index fell 3.03% last month and was down 5% for the year-to-date due to the decline in international equities. The Arbitrage/Event Driven Index was off 1.48% last month and was down 2.26% for the year-to-date, as hedge funds were hurt by widening credit spreads.