Hedge Fund Managers More Bullish On Treasuries, More Bearish On The Dollar And Stocks

by Phillip Morton, Investors Offshore.com

04 June 2004

Fund managers are becoming less bearish over the short term outlook for US treasuries, whilst becoming more bearish over the prospects for the US dollar and equities according to the Van Hedge Fund Advisors International Market Sentiment Indicator for the month of June.

The Indicators are based on the outlook of hedge fund managers employing a macro view and who manage, in aggregate, in excess of $33 billion in assets. The purpose of the indicators is to reveal how these managers believe the S&P 500, the US dollar and the US Treasury 10-year Note will perform over the current month.

According to the sentiment indicator, managers’ stance on the US dollar has become increasing bearish, with 66% of the managers reporting they expect to see the dollar end the month lower, up from 41% who held a bearish view in last month’s survey.

Managers are also becoming increasingly bearish over the prospects for equities and 48% expect to see the S&P 500 index decline in June, compared to 34% who thought the same in May.

Finally, the managers have slightly shifted their stance on the US Treasury 10-year Note. While the percent of bullish managers is virtually unchanged, the bearish group has shrunk from 45% to 28%.

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