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UK-based hedge funds most confident over their prospects

News Team, 04/10/2021

According to recent research, hedge funds based in the UK are the most confident in their economic prospects compared to other regions across the world, including the US.

The findings come from the latest Global Hedge Fund Confidence Index, produced by the Alternative Investment Management Association (AIMA). The global index measures the level of confidence hedge funds have in their business prospects over the coming 12 months.

From a global average perspective, the third quarter saw confidence hit its highest level so far this year with all regions scoring higher than they did in Q2. The only exception being the US, which AIMA puts down to the Delta variant of Covid 19. However, the body added that this is considered a ‘temporary setback’ with travel expected to recover strongly in Q4.

Year-to-date, hedge funds on average are posting double-digit returns net of fees with the mood across the industry being further boosted by continued positive net inflows in the first half of this year.

Tom Kehoe, global head of research at AIMA, said: “Prospects for the hedge fund industry are as strong as they have been in many years, underpinned by solid industry performance and renewed investor interest. Despite several industry headwinds including COVID variants, increased regulatory scrutiny as well as operational challenges for the industry to consider, hedge funds globally remain cautiously optimistic regarding the economic prospects of their business over the coming 12 months.”

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