The numbers are in for the fourth quarter—the number of hedge fund launches and liquidations, that is—and they are, uh, well, frankly: grim. Just 89 new hedge funds opened in the last three months of 2019, and 480 for the year, the lowest totals since 2019 and 2000, respectively, until, we presume, the numbers for this pandemic-infected quarter and the next come out. Suffice it to say that those births were far outnumbered by deaths, with nearly 200 hedge funds closing their doors in the quarter, a number that sure looks likely to rise as more hedge funds catch the alternative investments equivalent of COVID-19 and die.
Allianz Global Investors is liquidating two hedge funds after they took heavy losses in recent weeks on stock-options trades…. Allianz… will also close a related offshore feeder fund.
The Swedish hedge fund manager Bodenholm Capital AB has decided to close its funds and return capital to investors.
“The funds have been liquidated in the best interest of our investors and the team will take a clean break from the industry for the foreseeable future,” the Stockholm-based hedge fund manager said in a letter to investors
Parplus Partners’ website and LinkedIn page have been taken down. Carney said he had been advised by lawyers not to speak publicly about the company…. Ronan Guilfoyle, co-founder of fund governance firm Calderwood, who helped Carney set up its flagship Parplus Equity Fund in the Cayman Islands, told Financial News: “I am bound by the confidentiality of rules in the Cayman Islands.”
Guess management fees might come in handy when the market is tanking.
“Now, we are moving 1% in a few minutes and 2 and 3 percent every day,” he said.
“It’s such a different animal than where we were at a couple months ago,” Carney said Wednesday.
Carney said that what’s striking is that the speed of moves has frustrated traders, and forced them to buy smaller lots of assets for fear that they couldn’t be filled. “You go to buy a hundred of something and it might move away from you in seconds,” he said.
Hedge fund launches at lowest since 2008 in fourth-quarter: HFR [Reuters]
Allianz Global Investors Liquidates Two Hedge Funds [WSJ]
Swedish $1 Billion Hedge Fund Closes, Returns Money to Investors [Bloomberg]
Uncertainty over future of pioneering New York hedge fund Parplus [FN]
Wild stock-market swings are ‘emotionally and intellectually wearing’ on Wall Street [MarketWatch]