US Leads Surge In Confidence – Hedge Fund Survey

Jackie Bennion

13 April 2021

In the first quarter of 2021, a survey of over 300 hedge fund managers collectively managing $1 trillion revealed that over 90 per cent of them were positive about the economic outlook for the year ahead. The survey, conducted by the , found that UK-based funds’ confidence levels were up by 60 per cent from sentiment expressed in December 2020 as UK financial services began navigating a post-Brexit course and towards a post-COVID recovery.

The results are part of the AIMA’s Hedge Fund Confidence Index (HFCI), a new index measuring confidence across the sector specifically focused on the economic prospects of their business over the next 12 months.

The group said the trend is “significant but not surprising” given the transition in power in the US and what is perceived as a more predictable administration. “Additionally, scale of vaccine distribution has been promising and leads us to believe that we are one step closer to a return to normalcy,” Steve Nadel, said, a partner at said; the firm is another research partner in the survey.

The sector has had a rocky time of late beginning with the populist-driven GameStop saga, followed soon after by the collapse of Archegos Capital, the hedge fund run as the family office of Bill Hwang.