Hedge fund confidence grows for the year ahead, says AIMA Confidence Index report
The latest edition of the AIMA Hedge Fund Confidence Index (HFCI) – a global index that measures confidence hedge funds have in the economic prospects over the next 12 months – reveals that the average measure of confidence has risen to +19.5, up from an average of +18.4 in Q1.
Based on a survey of more than 300 hedge funds accounting for approximately USD1 trillion in assets, respondents are asked to choose from a range of -50 to +50, where +50 indicates the highest possible level of economic confidence over the next 12 months.
More than 90 per cent of funds reported a positive confidence score for their economic prospects for the next 12 months.
North America-based hedge funds (which count in the majority US-based funds) continue to express the highest level of confidence globally, scoring on average +22.5 for Q2, followed by APAC with an average score of +18.2, while EMEA (which includes UK funds) scored +17.7 (up from +17.3).
Tom Kehoe, Global Head of Research and Communications, says: “Amidst continued steady returns being delivered by hedge funds globally, it is pleasing to see the industry report another uptick in its level of confidence for the 12 months ahead. The clustered scoring witnessed in all three iterations of the index since its launch last December shows an industry quietly going about their business and meeting the expectations of their clients.”