Hedge funds delivered an average of 2.5% in July and are up 9.9% year-to-date, the best performance in 11 years, according to the Credit Suisse/Tremont Hedge Fund Index.

The best-performing category was convertible arbitrage, up 5.8% in July and 31% year to date. The worst-performing category was hedge funds that short the market, down 7.3% in July and down 1.4% in the first seven months of the year.

Last week, Hennessee Group reported similar returns for hedge funds in a report that noted the economy appears to be heading for a recovery.

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