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Q2 2024 results

The Q2 2024 edition of the HFCI surveyed approximately 250 hedge fund firms worldwide, collectively managing approximately $2 trillion in assets. The results show an average confidence level of +16.5, down slightly from Q1 (+19) and below the rolling historic average of +17.7.

The downturn in the overall average score since the first quarter comes despite the respondent pool being dominated 80/20 in favour of larger hedge fund managers, (those with an AuM greater than $1 billion), which are historically more confident than their smaller peers. That said, those smaller hedge fund managers who responded recorded a significant confidence downturn this quarter. Their average confidence dropped to +13, down from +18.9 in Q1. Overall, 92% of respondents reported a positive confidence score, but, broken down by AUM, 96% of larger hedge fund managers offered a positive sentiment score, compared to 77% of smaller firms.

An additional factor causing a drag on the overall performance level is the large portion of long-short equity respondents, who are once again the least confident group surveyed by strategy. So far, these hedge fund managers have failed to regain confidence despite the positive performance of major equity markets and the prospect of interest rate cuts later this year.

Selecting the appropriate level of confidence, respondents are asked to choose from a range of -50 to +50, where +50 indicates the highest possible level of economic confidence for the firm over the next 12 months. When measuring their level of economic confidence, hedge fund managers respondents are asked to consider 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).

Full report here:

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