Indian hedge funds underperform in July, China funds fare better

July's performance came in the midst of better returns elsewhere in the world

Indian hedge funds lagged others during the budget-month, suggesting that they may have been caught on the wrong foot on how they were positioned for the first Union Budget of the new government. The fall in July was amid Budget disappointments, and selling by foreign portfolio investors after the introduction of higher taxes on their returns in Indian markets. 

The Eurekahedge India Hedge Fund Index was down 3.42 per cent, its worst performance in ten months. The last time the index did worse was in September 2018. The index showed a 7.7 per cent decline amidst headwinds including global trade tensions