The Alternative Investment Management Association (AIMA) released the Q3 Hedge Fund Confident Index (HFCI). It offers an aggregate projection of the level of optimism of hundreds of hedge funds — of various sizes, locations, and investment strategies — regarding their economic prospects for the next 12 months.
The Q3 2024 HFCI shows a resurgence in optimism, driven by long-short equity and global macro hedge funds. Confidence levels increased across both large and smaller hedge fund managers, with the latter seeing a notable improvement, bringing the overall score to its highest level in a year.
The increase in confidence is largely attributed to the respondents’ belief in their ability to deliver for their investors. Capital-raising prospects have also improved, though concerns about managing costs remain, particularly among larger managers.
Regionally, North America reclaimed its position as the most confident region, while confidence scores among North America, the UK, and APAC are converging, suggesting global macroeconomic challenges are uniting these regions.