The AIMA Hedge Fund Confidence Index (HFCI) is a new global index which measures the level of confidence that hedge funds have in the economic prospects of their business over the next 12 months.
A product of AIMA, Simmons & Simmons and Seward & Kissel, the HFCI is calculated every quarter, with a measure taken at the end of each quarter. 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 month period and -50 indicates the lowest level of economic confidence for the firm over the same period. An index level of zero (0) indicates a neutral level of confidence.
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).