Hedge Fund Managers Feel Bearish In April

Date: Wednesday, April 2, 2008
Author: FINalternatives.com

The first quarter may be over, but hedge fund managers expect the bad news in the financial markets to persist.

Alternative asset managers continue to hold a negative view on the S&P 500, the U.S. dollar, and the 10-year Treasury Note, according to market sentiment indicators released yesterday by Greenwich Alternative Investments.

According to the indicators, 58% of hedge fund managers hold a bearish view on the S&P 500, 17% hold a neutral view, and 25% are bullish.

Meanwhile, the dollar continued its slide lower in March and the majority of the hedge fund managers expect this trend to continue. In total, 58% are bearish about the U.S. currency, 17% are neutral and 25% are bullish.

Finally, despite U.S. 10-year prices moving higher last month, hedge fund managers are less optimistic on the prospects for April, with 67% holding a bearish view, 25% holding a neutral view and 8% feeling bullish.

The Greenwich Alternative Investments Macro Sentiment Indicators are based on the outlook of hedge fund managers employing a macro view and who manage, in aggregate, in excess of $30 billion in assets.

U.S. Equities (S&P 500)

Expectation	Bullish	Neutral	Bearish
February	50%	0%	50%
March	14%	36%	50%
April	25%	17%	58%

U.S. Dollar

Expectation	Bullish	Neutral	Bearish
February	42%	16%	42%
March	21%	29%	50%
April	25%	17%	58%

U.S. Treasury 10-year Note (price)

Expectation	Bullish	Neutral	Bearish
February	42%	16%	42%
March	36%	21%	43%
April	8%	25%	67%