The Hennessee hedge fund index rose 0.33 per cent in July (up 8.96 per cent YTD), whilst the S&P 500 decreased 3.20 per cent (up 2.62 per cent YTD), the Dow Jones Industrial Average declined 1.47 per cent (up 6.00 per cent YTD) and the NASDAQ Composite Index declined 2.19 per cent (up 5.42 per cent YTD). The Lehman Intermediate government/corporate bond index advanced 0.95 per cent (up 2.41 per cent YTD). Lee Hennessee, managing principal, said: "Thus far, it has been a good year for hedge funds as a whole, despite the collapse of several funds focused on fixed income. The increase in equity market volatility has been welcomed by short sellers who have had a tough time over the past four years." Last month the MSCI Hedge Invest index gained 0.01 per cent, bringing the return since July 2003 to 26.70 per cent. The largest positive contribution came from discretionary trading funds, adding 8 basis points, while the largest negative contribution came from systematic trading funds with losses of 19 basis points.