Hedge fund managers’ confidence declines as macroeconomic concerns and regulatory uncertainty persist
Hedge fund managers are displaying reduced confidence in the economic outlook for the rest of 2023, according to the Alternative Investment Management Association’s Hedge Fund Confidence Index.
Hedge fund managers are displaying reduced confidence in the economic outlook for the rest of 2023, according to the Alternative Investment Management Association’s Hedge Fund Confidence Index.
The average confidence score dropped by 2.1 points quarter-over-quarter, reaching 14.2, below the historical average of 17.5. Factors such as ongoing macro and geopolitical concerns, along with regulatory uncertainty for U.S.-based funds, contributed to this decline.
Managers of funds of funds exhibited the highest level of confidence, while those employing long-short strategies were the least optimistic. Larger managers maintained higher confidence levels compared to smaller ones.
The survey also revealed regional variations, with North America remaining the most confident region, while the Asia-Pacific region reported its lowest score on record. Despite the challenges, hedge funds may find opportunities in a potentially divergent monetary policy landscape in the second half of the year.
