Over 70 per cent of hedge fund firms are positive about their business prospects for the coming year, according to AIMA's new Hedge Fund Confidence Index (HFCI).

Over 70 per cent of hedge fund firms are positive about their business prospects for the coming year, according to AIMA's new Hedge Fund Confidence Index (HFCI).

The average measure for hedge fund firms globally is +14 on a scale of -50 to +50, while firms in the Americas – including Latin America – are the most confident recording a score of +20. By comparison, the average score for EMEA firms is +10, while APAC respondents indicated a confidence rating of +11.

Smaller firms meanwhile – those managing up to USD1 billion – are more confident than larger firms, recording a confidence rating of +17 compared to +11 for those managing in excess of USD1 billion.

AIMA teamed with law firms Simmons & Simmons and Seward & Kissel to launch the new index which is calculated at a specified point in time and published at the end of each quarter. When considering how best to measure their level of economic confidence, hedge fund respondents are asked to take into account the following factors: their firm’s ability to raise capital; their firm’s ability to generate revenue and manage costs; and the overall performance of their fund(s).