The number of hedge funds is on track to shrink this year as disappointing returns have forced an increasing number to shut down, Barclays said in a report last week. The industry is expected to contract for the first time since the 2008 financial crisis as fewer funds are likely to be launched and more managers shut down operations.
Research firm Hedge Fund Research counted a total of 10,007 hedge funds worldwide in July. Barclays estimated 2016 would end with 340 fewer hedge funds worldwide, down about 4 percent from last year.
The last time the number shrank was in 2009, when it also fell by 4 percent. That followed an 11 percent contraction at the height of the financial crisis.