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Money managers under the microscope

A genuine rally or just bull?

May 19, 2009

Big-hitters Crispin Odey and Anthony Bolton may have pointed to the start of a new bull market, but not all hedge fund managers are convinced.

rtr22ooyA report from Credit Suisse/Tremont, published today, says many managers played it safe in April, meaning funds made an average gain of just 1.68 percent, compared with a 9.57 percent rally in the S&P 500.

Even equity long/short, which some commentators accused of having too much of a long bias and therefore getting caught in last year’s market slump, made only 2.54 percent.

“Many kept a cautious stance with regard to going long the markets in light of latent market challenges and financial shocks that many anticipate may still be in the making,” the report said.

The figures are well below Odey’s 27.74 percent gain last month. But then again, it still remains to be seen whether this is the start of the next bull market or merely a fool’s rally.

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