AIMA, the global representative for the alternative investment management industry, has today published the results of its Q1 2022 Hedge Fund Confidence Index (HFCI) in partnership with Simmons & Simmons and Seward & Kissel.
Confidence Level Of Hedge Funds
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.
Q4 2021 hedge fund letters, conferences and more
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.
Upon closer examination of the hedge fund strategies that we polled, global macro (+19) and multistrategy (+18) reported the highest confidence scores. It is therefore little wonder why both were voted as being among the most popular strategies that investors would allocate to in the first six months of this year.2 As we close the quarter, indications are that investors have made good their intentions, with industry vendors suggesting that there has been net inflows over the quarter.
Elsewhere, regulatory and compliance headwinds across the industry have intensified, in particular for private funds following a series of proposals announced by the SEC in March. If approved in their current form, they would represent a serious overhaul of existing market practices, with potentially disruptive consequences.
Despite these challenges and the threat of more still to come, the industry’s global confidence score for Q1 reflects the fact that hedge funds are reinforcing their value proposition of offering investors financial security and uncorrelated returns during uncertain times.
