New data from AIMA’s most recent confidence index has revealed that confidence among North American and Canadian hedge fund managers was down 42 per cent from its last peak in the second quarter of 2021, according to a report by Institutional Investor.
In Asia, businesses only dropped 19 per cent, but managers remain wary.
Despite market turbulence making markets favourable, with inflation, rising interest rates, and war in Ukraine, managers across the US and Asia Pacific regions are nonetheless losing confidence in future business opportunities.
Some 90 per cent of hedge funds remain confident about their business prospects for the next 12 months, according to the most recent index. According to AIMA, the average confidence score reached +17 in the last two weeks of March, up a small amount from the fourth quarter.
Bullish UK hedge fund managers represented 47 per cent of respondents, however, skewing those statistics. In the UK, hedge fund managers’ confidence scores went up between the fourth quarter of 2021 and the first quarter of 2022.
