Hedge Fund Managers Bullish On Stocks, Bearish On Treasuries

by Phillip Morton, Investors Offshore.com

08 April 2004

Van Hedge Fund Advisors International on Monday released its indicators on market sentiment held by hedge fund managers for US equities, the US dollar and the US 10-year Treasury Note.

The Van Macro Sentiment Indicators are based on the outlook of hedge fund managers employing a macro strategy managing in excess of $33 billion. The indicators show that sentiment is becoming bearish of government bonds and fairly bullish of equities.

According to Van, some 76% of fund managers anticipate a fall in the 10-year Note by the end of April, up from 67% who thought the same in March. Meanwhile, 62% envisage the S&P 500 finishing the month higher, against 40% who held a bullish outlook for March.

Meanwhile, the outlook for the US dollar is somewhat mixed. Whilst 35% of the fund managers see the dollar rising in April, an equal amount hold the opposite view, whilst just under one-third (30%) were neutral. This has shifted from a more bullish to neutral viewpoint in March when half the managers anticipated an increase in the value of the greenback.

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