The average confidence of hedge fund mangers in the economic prospects of their businesses over the coming 12 months fell slightly in the second quarter of the year to +14.2, from +16.3 in Q1, according to the latest AIMA Hedge Fund Confidence Index.
The average confidence of hedge fund mangers in the economic prospects of their businesses over the coming 12 months fell slightly in the second quarter of the year to +14.2, from +16.3 in Q1, according to the latest AIMA Hedge Fund Confidence Index (HFCI).
The downturn, which drags the HFCI further away from the historic average of +17.5, comes despite a slightly greater percentage of respondents representing managers with more than $1 billion in assets (77% in Q2 versus 71% in Q1), and the average AUM of respondents also increasing to $7.9 billion, up by almost $1 billion from the prior quarter – both historic indicators of greater confidence.
The latest HFCI, which is produced in partnership with Simmons & Simmons and Seward & Kissel, is based on a sample of 408 hedge funds, accounting for approximately $3.34 trillion in assets – making it the largest ever HFCI in terms of the absolute number of respondents and overall AUM – polled during the week ending 23 June 2023.
Tom Kehoe, Global Head of Research and Communications at AIMA, said: “In the face of prevailing macroeconomic and geopolitical concerns, we acknowledge the lower levels of economic confidence reported by hedge funds. News that central bank monetary policy is likely to diverge from the second half of this year should present more trading opportunities for hedge funds and the resultant next HFCI being more positive to the pattern set in the first half of this year.”
