Hedge funds moved solidly in April into positive territory for 2009 as measured by the Greenwich Global Hedge Fund Index (GGHFI). The index returned 3.49% with the Greenwich Composite Investable Index (GI2) up 0.43% in April compared to global equity returns in the S&P 500 Total Return +9.57%, MSCI World Equity +10.91% and FTSE 100 +8.09% equity indices.

Year-to-date, the GGHFI returned a positive 3.91% and the G12 up 2.81%. This compares to the S&P 500 Total Return down 2.50%, MSCI World Equity falling 2.96% and FTSE 100 Indices losing 4.48%, in the same period. Almost three-quarters (72%) of constituent funds in the GGHFI ended April with gains

Macro managers expressed divergent views about the direction of the S&P 500 for May. Half reported a bullish view of equities compared with 45% in April while 40% of managers reported a bearish view versus 18% in April.

Managers grew more bearish on the outlook for dollar in May with 40% reporting a bearish sentiment compared with 27% in April.

For 10-year US Treasury prices, macro managers were more bearish compared with April with 50% reporting bearish, 30% neutral and 20% bullish outlooks.

Greenwich Alternative Investments Market Sentiment Indicators