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Hedge Fund Results Suffered in July, Fueling More Worry

Like many other investors, hedge-funds didn't do very well in July.

The Hedge Fund Research's Global Index fell 0.93% in July but was still up 5.4% for the year, according to preliminary results.

Hedge Fund Research's Macro Index is down 3.13% on the month, and up 0.42% for the year, while Merger Arbitrage is down 2.14% for July and up 3.63% year-to-date. Relative Value Arbitrage is up 1.65% for last month and up 6.36% for the year, while Equity Market Neutral funds are down 0.42% for the month and up 6.21% this year.

Markets are bracing for more revelations of hedge-fund losses and wondering whether there are worse to come as funds face possible redemptions and margin calls from their banks.

On Wednesday, Tudor's $9 billion Raptor Fund lost 9% in July and is off 3% for the year. A second $10 billion fund, the Tudor BVI Fund, is off 3% for the month, but up 4.6% for the year.

Meanwhile, the $11 billion Caxton Global Investment fund took the unusual step of denying rumors it was in trouble in a letter to investors. Caxton said they had, in fact, lost 3% on the month, but were up 3% for the year.

Massive redemptions at either Raptor or Caxton are seen as unlikely becase they are well established and have strong records of returns over decades.

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