Hedge Fund Managers Uncertain On US Stocks, But Bearish On T-Notes

by Carla Johnson, Investors Offshore.com

06 April 2006

There appears to be mixed sentiment among hedge fund managers over the outlook for US equities in the month ahead, but managers are overwhelming bearish on the price of US Ten-Year Treasury bonds in the short term.

The monthly sentiment indicators released Monday by Greenwich-Van Advisors LLC, the hedge fund advisory firm and index provider, shows that 35% of macro hedge fund managers polled think the S&P 500 will move higher during April. However, an equal number believe the index will trend lower in the month ahead.

On the short-term prospects for the US Ten-Year T-Note, the managers were more emphatic with their views, with 70% expecting the price of the T-Note to drop during April, despite a steep decline during March. The last time that over 60% of the managers in the Greenwich-Van Marco Sentiment Index held such a bearish view was in February 2005.

The indicators also revealed a mixed outlook towards the prospect for the US Dollar in the month ahead, although the bias was tilted more towards the bears, which make up 41% of the poll against 35% who are bullish.

The Greenwich-Van indicators are based on the outlook of hedge fund managers who manage, in aggregate, in excess of $30 billion in assets.

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