Equities: Pale and sickly


The first four months of 2006 must now appear like a dream to U.S. equity managers as they begin the long, slow climb back to relevance. After sizable losses in May and June, the Absolute Return U.S. Equity Index gained a median 0.60% in July (5.65% YTD), in lockstep with the S&P 500's monthly gain of 0.62% (3.34% YTD).

Global long/short equity funds fared less well, rising 0.16% in July (5.42% YTD), helped in part by gains in Asia and Latin America. But these funds' performance significantly lags the MSCI World Index (ex-U.S.) return of 0.94% for July and