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Laxman Pai, Opalesque Asia:

After an optimistic quarter, the confidence of hedge fund managers has dropped sharply. North American managers had the lowest confidence score, said a report.

According to AIMA's fourth quarter hedge fund confidence index, the overall confidence score has fallen to 14.1, more than 10 points below the previous quarter and the lowest ever since the survey first launched in 2020.

Based on a sample of 328 hedge funds (accounting for approx. US$2 trillion in assets) that participated in the index, the average measure of confidence (in the economic prospects of their business over the coming 12 months) is +14.1, representing a two-year low in confidence levels reported by hedge funds, and several points below the historic average, the report further explained.

The downturn in confidence from the previous quarter is ubiquitous across all regions, fund sizes, and strategies but upon closer examination of the data the overall score is most influenced by a clear divergence in confidence across strategies that post significantly lower scores related to the prior quarter.

On a geographic basis, the EMEA confidence score is influenced by Middle Eastern fund managers, who were the most confident of all the regional groups. Beyond the growth of several financial hubs across the Middle East as attractive domiciles for alternative investment funds, the score is driven by a respondent pool dominated by multi-billion-dollar global macro funds that are......................

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