Mon, Dec 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

TrimTabs/BarclayHedge survey: Only 31% of hedge fund managers bullish on S&P 500

Wednesday, October 06, 2010
Opalesque Industry Update - October 5, 2010 - Only 31% of hedge fund managers are bullish on the S&P 500, according to the TrimTabs/BarclayHedge Survey of Hedge Fund Managers for September. About 37% of the 109 hedge fund managers surveyed are bearish on stocks, while 32% are neutral.

"Hedge fund managers were extremely bearish on equities at the end of August, and they remain downbeat even though the S&P 500 soared 8.8% in September," said Sol Waksman, founder and president of BarclayHedge. "Negative sentiment has proven costly, as the industry underperformed by more than 500 basis points last month. But managers are sticking to their bearish guns; four in 10 are forecasting stock prices will fall at least 2% in the coming weeks."

About 27% of hedge fund managers are bearish on the 10-year Treasury note, the largest share in four months, while only 24% are bullish. Additionally, 36% are bearish on the U.S dollar index, while only 21% are bullish. These shares are the largest and smallest, respectively, since May. Meanwhile, 19% of hedge fund managers plan to increase leverage in the next month.

"While managers dislike stocks, bonds, and the greenback, many aim to lever up," said Vincent Deluard, Executive Vice President at TrimTabs. "Short rates are essentially zero, the 10-year Treasury yields a scant 2.5%, and real interest rates are negative. Where there's an incentive to increase leverage, managers will act."

About 79% of managers attribute record company cash balances to uncertainty about the economic and political/regulatory outlooks, while only 14% cite a lack of profitable investment opportunities. About 28% of managers want firms to use excess cash to pay down debt, while 17% prefer they keep it on the balance sheet.

"Managers want companies to exercise caution," explained Deluard. "Typically, they'd promote acquisitions and capital spending, stock buybacks, and increased dividends. But in a muddy economic environment a month ahead of midterm elections, managers favor hoarding cash and preparing for the worst."

(press release)

The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of these flows as well as relevant topical studies. Click here for further information.

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und