Hedge Fund Sentiment Survey Shows Technology as Best Investment

Date: Wednesday, January 24, 2007
Author: Hedgeco.net

HedgeCo.Net (New York) - VanthedgePoint Group Inc. announced the results of its second annual Emerging Hedge Fund Manager Sentiment Survey.

When asked where to invest in the U.S. stock market, hedge fund managers said that Technology (41.0%), Financial Services (31.2%), Consumer Goods (26.2%), Food & Beverage (21.3%) and Defense (21.3%) will be the best performing sectors in 2007.

57.4% of emerging hedge fund managers indicated they are largely "neutral" on the U.S. economy for 2007. Approximately one-third are "bullish" on the economy and U.S. equities. They believe a continued "Real state market slowdown" (29.5%) and "inflation" (21.3%) will play the biggest role in how the U.S. economy will fare this year.

Over half of all respondents manage hedge funds with less than $10 million in assets under management, while over 85% currently manage less than $100 million. In addition, emerging hedge fund managers indicated that the most difficult aspect of running a hedge fund business is "raising capital/marketing".

In 2006, the Emerging Hedge Fund Manager Sentiment Survey results turned out to be quite accurate. Last year, respondents predicted increasing energy costs and a real estate market slowdown, both of which slowed the U.S. economy in 2006. They correctly predicted that Technology, Raw Materials, Financial Services and Defense would be among the top performing sectors in the U.S., and they narrowly missed the mark by indicating China would be the best performing international market.

VanthedgePoint Group, Inc. is an integrated financial services holding company focused on delivering products and services to emerging hedge funds. VanthedgePoint offers customers a comprehensive solution that includes U.S. and international equities, options and futures execution along with equity finance and operations outsourcing.

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net