Hedge Fund Managers Feel Bearish In April

Apr 2 2008 | 7:04am ET

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%

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