Risk assets were once again on the rise in July and several asset classes broke records. Last week, the S&P 500 reached an all-time high, while the spot VIX index reached an all-time low. The MSCI World (net total return local currency index) is up for the ninth month in a row, which was unseen since 1987.

Risk assets range-traded before rallying after Yellen's dovish testimony before Congress and amid positive economic prints in the U.S. and Eurozone. Releases in the U.S. suggested healthy activity and job growth.

LGT Capital Partners Ltd., a leading alternative investment specialist, has successfully completed the acquisition of European Capital Fund Management Ltd. (European Capital), a London- and Paris-based private debt manager, from Ares Capital Corporation.

All strategies were up last week. Hedge funds captured the upside which was a function of the protections implemented ahead of the French vote. Special Situations outperformed, as their cyclical and turnaround positions surged. CTAs' strong long equity exposure offset losses in their short Euro and in their long Euro bonds.

Hedge funds generated alpha last week. Global Macro funds outperformed thanks to higher dollar and oil prices. Amid slightly negative global equities, L/S Equity funds succeeded in extracting excess returns, especially in Europe through relative trades.