What next for long/short equity after tricky July for shorts?

• July’s equity rally hit performance on the short-side. Related: July hedge fund performance round-up
• But Goldman Sachs cap intro survey detects renewed conviction in long/short equity, even trumping multi-strategy
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After disappointing in 2022, long/short equity hedge funds are not enjoying the breakthrough year some predicted — and many in the industry hoped for.

Their returns, averaging about 5% year-to-date, trail the booming equity markets. Short-sellers have had it tough — and it got tougher still in July as the market “melt-up” forced big unwinds in positions.