FOR IMMEDIATE RELEASE
U.S. Dollar Favorite Currency Investment of Hedge Fund Managers in Near Term;
Few Fund Managers Expect Greek Sovereign Debt Crisis to Lead to Destruction of Euro
New York, NY – March 9, 2010 – TrimTabs Investment Research and BarclayHedge reported that the U.S. dollar is the currency on which hedge fund managers are most bullish in the near term. Six in 10 fund managers cite the greenback as their preferred currency investment over the next three months, according to the February TrimTabs/BarclayHedge Currency Survey of Hedge Fund Managers.
“The debt crisis in Greece, the creditworthiness of other countries in Europe, and the U.S. dollar rally have market participants focused on currencies,” said Vincent Deluard, Global Equity Strategist at TrimTabs. “We think currencies will dominate other investment themes throughout 2010.”
Nearly 26% of hedge fund managers expect a quick resolution to the Greek crisis, while 59% believe it will spread without endangering the unity of the Eurozone. Only 15% of managers believe it will lead to the destruction of the euro.
“The euro is one of the few successes of the European Union in the past 10 years,” said Deluard. “France and Germany will take action to protect it if this Greek tragedy infects other Eurozone members.”
Nearly all managers expect the yield on the 10-year Treasury note to remain level or rise significantly by year-end. Only 7% expect long-term interest rates to drop.
“Managers worried about inflation expect long-term rates to pop,” Deluard explained. “And governments on both sides of the pond are auctioning huge amounts of debt this year. Beware a bloodbath in bonds.”
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.
BarclayHedge is a leading hedge fund data vendor and one of the foremost sources for proprietary research in the field of alternative investments. From its origin as a research specialist and performance measurement firm, BarclayHedge has developed complete client services as a publisher, database and software provider, and industry consultant.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit us here.