There Have Been Better Times To Be In, Get Into The Hedge Fund Industry Than Last Year

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New hedge fund launches declined to their lowest level in three years in 2013 even as total hedge fund industry capital ended the year at a record $2.62 trillion. New hedge fund launches totaled 1,060 for 2013, the lowest level since 935 funds launched in 2010, according the latest HFR Market Microstructure Industry Report…Hedge fund liquidations increased to their highest level since 2009, with 904 funds closing during 2013, exceeding the 873 that liquidated in 2012 but trailing the 1,023 from 2009.."Despite the modest and encouraging normalization of data on capital inflows by firm size though year end, data on launches and liquidations suggests the capital raising environment for mid- to small hedge funds continues to be challenging,” stated Kenneth J. Heinz, President of HFR. “As the scope and audience for new hedge fund products continues to expand, new funds are faced with the combined challenges of generating performance to attract investors while offering comprehensive, institutional infrastructure, competitive fee terms and attracting investment professionals necessary to expand the business franchise.

New Hedge Fund Launches Fall As Top HFRI Performers Surge [HFR PR]

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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.