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From The Opalesque Team:

In early April Federal Reserve Chairman Ben Bernanke was interviewed by the CBS program "60 Minutes", an interview during which he said green shoots were showing up on the economic landscape. Since that interview the catch phrase for 2Q 2009 has quickly become "green shoots" and much ink has been used in the discussion of whether or not they are really sprouting or if those who see them are simply suffering from spring fever.

Green shoots sprouted for hedge funds in April Final performance for the Credit Suisse Tremont Hedge Fund Index in April was +1.68%. And while the industry overall saw an upswing, the firm recently published a paper taking a closer look at the "noteworthy" reversal of performance for the convertible arbitrage strategy. (See previous Opalesque coverage here: Source)

Convertible arbitrage a worst performer in 2008 has become a top performer in 2009 (+12.58% YTD), and this may signal green shoots are indeed sprouting. "This turnaround [in convertible arbitrage] took place as credit markets began to function again in 2009 following the credit crisis in the fourth quarter of 2008 in which de-leveraging and risk aversion became the driving forces of the markets and convertible bonds suffered a severe devaluation."

A few other reflections on green shoots: Sydney-based hedge fu......................

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