The MSCI Hedge Fund Composite index gained 1.23% in the first half of 2005, sparked by a 1.52% gain in June. The top-performing subindexes were European securities, returning 4.2%; emerging markets securities, 4.11%; and specialist credit securities, 3.12%. Laggards were relative value, -0.31%; directional trading, 0.05%; and North American securities, 0.52%.
Separately, macro hedge-fund managers remain positive about U.S. equities, with 50% believing the S&P 500 will continue to rally into the month, according to market sentiment indicators released by Van Hedge Fund Advisors International. Of the 20 managers polled a month earlier, half were bullish about U.S. equities. However, 30% of the managers had a neutral outlook for domestic equities in August, and 20% were bearish. A month earlier, 11% of those managers were neutral and 39% bearish, according to the firm's findings.
Managers are increasingly bullish regarding the U.S. dollar and U.S. Treasury 10-year notes. Of those polled, 45% were bullish about the dollar in August, compared with 39% for July. Half of the managers were bullish about the 10-year notes, compared with only 33% last month.
