Thursday, September 24, 2015

The Disappearing Hedge Fund

As the stock markets have seen so much turbulence over the past few months, causing distress for many mutual fund investors, you might think hedge funds would gain in popularity. But that hasn't been the case. New hedge funds this year are appearing at the slowest pace since 2010, Hedge Fund Research reported yesterday.
According to HFR, 252 new hedge funds rolled out in the second quarter, down slightly from the 264 in the previous quarter. Altogether, total first-half launches of hedge funds were the smallest in five years.
But they haven't been going away, either. Through the end of the first half, 417 hedge funds had been liquidated. That may sound like a lot, but it puts 2015 on track to record the lowest annual number of hedge fund liquidations since 2011.

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