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To: Sully- who wrote (36903)	5/15/2001 1:29:14 AM
From: Sully-	Respond to of 65232

Hedge funds see end to rate cuts By Craig Tolliver, CBS.MarketWatch.com Last Update: 4:05 PM ET May 14, 2001 NEW YORK (CBS.MW) -- Hedge fund managers expect the Federal Reserve will cut interest rates for the last time in this cycle Tuesday, and that the economy will continue to get worse before the rate decreases kick in, hedge fund consultant Hennessee Group said. Many managers feel that an anticipated 50 basis-point rate cut at Tuesday's Federal Open Market Committee meeting is already built into the market and will have little immediate effect. "The good news is the Fed's easing and that should mean a great market six months from now," said Charles Gradante, Hennessee's president and chief investment strategist, in an interview. "The bad news is unemployment is at a two-year high and looks like it's going to continue up." Most hedge fund managers are sitting on cash positions of around 20 percent and are waiting for easing by the Fed to stop, so they can short the market and offset some of their long positions, according to Gradante, whose firm monitors roughly 500 hedge fund managers. After four cuts by the Fed, managers expect that this will be the last, with some suggesting that it may even be unnecessary. "I think that 50 basis points is pretty much priced in, but maybe that is a stronger move than we need right now in consideration of the changes that have been made this year," said Sam Olesky, founder of Olesky Capital Management, a hedge fund with about $10 million under management. He said economic news has been mixed of late, as well as corporate news, and the economy has already seen a "pretty drastic reduction in rates so far." In fact, should Chairman Alan Greenspan and crew decide to cut rates by less than 50 basis points, some managers might even take it as a bullish sign. "The market either way is going to say this is the end. The market is going to say Greenspan is getting better news than has been released," Gradante said. "I don't think anybody is going to say that Greenspan has been too greedy with the easing." Craig Tolliver is the mutual funds editor for CBS.MarketWatch.com in Los Angeles. Reporter Chris Kraeuter helped with this report. cbs.marketwatch.com{3CE50C82-2AE6-4706-A692-16D4B9EDF2D6}&siteid=mktw Ö¿Ö

To: Sully- who wrote (36903)	5/15/2001 8:04:01 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

M A R K E T .. S N A P S H O T -- Modest upside in store for shares By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 7:30 AM ET May 15, 2001 NEW YORK (CBS.MW) -- A small bounce is in store for U.S. shares Tuesday as investors await the Fed's decision on rates later in the session. June S&P 500 futures rose 2.10 points, or 0.2 percent, and were trading roughly 1.90 points above fair value. Nasdaq futures, meanwhile, added 10.00 points, or 0.6 percent. In the government arena, the 10-year Treasury note was off 1/32 to yield ($TNX) 5.42 percent while the 30-year government bond shed 1/32 to yield ($TYX) 5.845 percent. No economic data is due out Tuesday. View Economic Preview and economic calendar and forecasts. In the currency arena, dollar/yen slipped 0.1 percent to 123.48 while euro/dollar edged up 0.4 percent to 0.8771. --------------------------------------------------------------------------------