Hedge Fund Confidence Rises

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 the second quarter, the highest average confidence score recorded since the Alternative Investment Management Association (AIMA) ‘Hedge Fund Confidence Index’ began in 2020. Confidence levels reported for the third quarter by hedge funds remain 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, as well as 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.