Hedge Fund Managers Less Bullish On US Stocks

by Carla Johnson, Investors Offshore.com

05 January 2006

Significantly fewer hedge fund managers believe that US equity markets will rise in January compared to previous recent months, according to a recent survey.

The monthly Greenwich Van Advisors Macro Sentiment Indicators are based on the outlook of macro hedge fund managers and who manage, in aggregate, in excess of $30 billion in assets. The purpose of the indicators is to reveal how these managers believe the S&P 500, the U.S. Dollar and the U.S. Treasury 10-year Note will perform over the current month.

According to the latest survey, little more than one third (35%) of the 20 hedge fund managers believe that the S&P 500 will rise in January, compared to more than half (56%) who held this view in December.

On the outlook for the US Dollar in the month ahead, the managers were split, with 45% expecting the currency to depreciate and 41% anticipating a rise in its value.

When asked on the prospects for the price of the 10-year T-Note during January, the managers were predominately bearish or neutral with 45% expecting the price to trend lower, 30% forecasting little movement and just 25% anticipating a gain.

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