GLOBAL – Institutional investors remain confident over the performance of hedge funds, with 70% of respondents to a recent Preqin survey anticipating 7-10% returns for the asset class this year.

Preqin said hedge funds recorded strong results in July, with returns climbing to more than 1.6% after the losses incurred in June.

According to the research firm, July remains the best month for hedge funds since January, with North America being the best-performing region during the month, posting returns of more than 2.7%.

Amy Bensted, head of hedge funds products at Preqin, said hedge funds posted positive returns across all regions and strategies in July to provide a boost to the industry following negative June returns, which ended a 12-month positive return streak.

“Event-driven hedge funds continue to lead the way, with 2.06% July returns taking year-to-date returns to 9.06%, whilst long/short funds also had an impressive July, with returns of 2.05%,” she said.

“North America has overtaken Asia–Pacific as the best-performing region in 2013, topping the regional July performance with returns of 2.73%, bringing North America fund performance to 9.53% year to date versus 9.2% in Asia-Pacific.”

The positive results have, in turn, led investors to keep faith in hedge fund strategies, Preqin said.

In total, 70% of the investors surveyed by Preqin believe the cumulative hedge fund returns for 2013 will reach 7-10%.

The survey also showed that 56% of investors expect North America to be the best-performing region this year.

By comparison, only 19% expected Europe to be the best-performing region, and 4% the Asia-Pacific.