People Still Launching Hedge Funds Faster Than They Can Fail

Well, the numbers are finally in for 2012 and it was, relatively speaking, a bloodbath for hedge funds, with more going to their grave or down the drain than in 2010 or 2011. But there were still 235 more hedge funds at the end of the year than at its beginning, because those who have previously shuttered a hedge fund due to their failure to raise/make enough money gave it another go last year. Look for more of the same this year, as fresh-faced and not-so-fresh-faced hedge fund managers hang out a new shingle for a few months, only to find out that investors are only interested in having Ray Dalio manage their money.
Author:
Updated:
Original:

Well, the numbers are finally in for 2012 and it was, relatively speaking, a bloodbath for hedge funds, with more going to their grave or down the drain than in 2010 or 2011. But there were still 235 more hedge funds at the end of the year than at its beginning, because those who have previously shuttered a hedge fund due to their failure to raise/make enough money gave it another go last year. Look for more of the same this year, as fresh-faced and not-so-fresh-faced hedge fund managers hang out a new shingle for a few months, only to find out that investors are only interested in having Ray Dalio manage their money.

“Despite total industry assets increasing to a record level, the capital raising environment continued to be challenging for emerging managers, including both small and mid-sized funds, as well as newly launched funds. While emerging manager performance has been strong, the bulk of the capital raised in the past two years has been allocated to the industry’s most well-established firms,” stated Kenneth J. Heinz, President of HFR.

New hedge fund launches rise on back on record industry asset increase [Hedge Fund Research PR via Opalesque]
Liquidations Rise But Are Outpaced By Launches In '12 [FINalternatives]
Hedge-Fund Liquidations Jumped in 2012 on European Crisis [Bloomberg]

Related

Hedge Fund Manager Who Lost 96% Six Years Ago Giving Up On Bouncing Back

"It’s just not fun being a hedge fund manager any more."

Cuomo.Hedge.Albany

Andrew Cuomo Hoping New Yorkers Distrust Hedge Funds More Than They Distrust Albany

It's bad that New York is investing with hedge funds since there are not hedge funds in New York(?)

By Phelps_400m_IM_Missouri_GP_2008.jpg: Karen Blaha from Columbia, MOderivative work: TestUser7809257 [CC BY-SA 2.0 ], via Wikimedia Commons

Michael Phelps Diving Into Hedge Fund Pool

It may be a sad, shallow pool right now, but he’s pretty sure it’ll Olympic-size next year.

People Have Just About Had Their Fill Of Fake Hedge Funds

"Hedge funds for masses" are losing their appeal.

Hedge Funds Thisclose To Just Giving Up

Hug a hedge fund manager today. He/she needs it.