AIMA Hedge Fund Confidence Index (HFCI)
Q4 2022
Based on a sample of 328 hedge funds (accounting for approx. US$2 trillion in assets) that participated in the index, the average measure of confidence (in the economic prospects of their business over the coming 12 months) is +14.1, representing a two year low in confidence levels reported by hedge funds, and several points below the historic average (See HFCI confidence score over time). The downturn in confidence from the previous quarter is ubiquitous across all regions, fund sizes and strategies but upon closer examination of the data the overall score is most influenced by a clear divergence in confidence across strategies that post significantly lower scores related to the prior quarter.
Q3 2022
Based on a sample of 389 hedge funds (accounting for approx. US$3 trillion in assets) that participated in the index, the average measure of confidence (in the economic prospects of their business over the coming 12 months) is +25.4 – up from +17.8 in Q2 – the highest average confidence score recorded since the HFCI began in 2020.
Q2 2022
Confidence levels reported by hedge funds remains upbeat despite continued economic and geo-political headwinds impacting the global economy, including the war in the Ukraine, consumer price inflation being at a 40-year high, and subsequent tightening of monetary policy not forgetting increased regulatory and compliance demands.
On a performance measure, hedge fund returns continue to be mixed.
While some fund strategies have experienced a challenging start to the year, others have thrived with performance dispersion across the industry becoming even more pronounced.
Q1 2022
Confidence levels reported by hedge funds remains resilient despite a number of prevailing headwinds impacting the global economy, including the war in the Ukraine and subsequent economic sanctions being imposed, consumer price inflation being at a 40-year high, not forgetting new regulatory and compliance demands.
Through the end of February, hedge fund returns has been mixed. While some fund strategies have experienced a challenging start to the year, others have thrived. Undoubtedly performance dispersion across the industry has become even more pronounced.