A reversal in financial stocks and commodities, especially energy, led the median U.S. long/short equity fund to decline 2.29% in July, according to data from Absolute Return. The month's loss puts the index back in the red, at -2.14% for the year so far. Global long/short equity funds were hit even harder, losing 2.98% in July to bring the sector's median year-to-date loss to 3.20%. That drop makes global equity the worst performing strategy for the month and for the year.
By comparison, the Standard & Poor's 500 Index lost 0.99%. Much of July's turmoil was caused by the