Monthly Hedge Fund Commentary
Credit Suisse/Tremont Hedge Fund Research
The Credit Suisse/Tremont Broad Hedge Fund Index Finished Up 0.65% in March—Global Macro Extends Streak to Five Positive Consecutive Months.
March saw a return of risk appetite as some equity markets had 20%+ rallies, catalyzed by positive news from Citibank and other large financial institutions regarding January and February revenues. We believe three factors may have contributed to the increased risk appetite: 1) Better tone to certain macro data on forward looking output indicators; 2) the Fed’s expansionary policy – the quantitative easing (QE) has kept yields low and was especially positive for mortgages, allowing for the mini-boom in refinancing to continue; 3) further intervention in the financial system, particularly the announcement of the PPIP program to purchase toxic assets from financial institutions, which helped boost market confidence, along with new IMF lending powers announced at the G20 meeting.
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March saw a return of risk appetite as some equity markets had 20%+ rallies, catalyzed by positive news from Citibank and other large financial institutions regarding January and February revenues. We believe three factors may have contributed to the increased risk appetite: 1) Better tone to certain macro data on forward looking output indicators; 2) the Fed’s expansionary policy – the quantitative easing (QE) has kept yields low and was especially positive for mortgages, allowing for the mini-boom in refinancing to continue; 3) further intervention in the financial system, particularly the announcement of the PPIP program to purchase toxic assets from financial institutions, which helped boost market confidence, along with new IMF lending powers announced at the G20 meeting.
To continue reading, please click here
