Sun, Oct 4, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Trends in hedge fund launches and asset raising

Thursday, March 17, 2011

From Kirsten Bischoff, Opalesque New York:

The rate of hedge fund closures has finally been surpassed by the rate of launching funds. New hedge fund launches totaled 935 in 2010, topping each of the prior two years and completing the best year for launches since 2007, when nearly 1,200 new hedge funds launched. (Hedge Fund Research)

“We have seen more startup activity in the past 6 months than we have over the course of the entire past 24 months,” Jack McDonald, President and CEO of hedge fund service provider and prime broker Conifer Securities LLC told Opalesque.

We have a saying, “vision without funding equals wishful thinking,” says McDonald. And perhaps nobody better than new managers realize the expense of launching a fund in 2011. The bar has been raised much higher than it was pre-2008. Investor expectations of fund and firm infrastructures are at an all-time high, with pending regulation likely to increase the expense necessary to be compliant with the any new requirements.

“We are always trying to gauge how well potential clients are prepared to run the business aspect of a fund. There is a lot of help we can give to managers in the early stages, but they still need to realize that they are ultimately signing up to run a business,” says McDonald. “The alternative is to join an existing fund, where one will be paid for individual performance. For those who do wa......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid

  5. Performance - Manager admits spin used to hide poor performance, Fortress macro hedge fund slumps 17.2% amid manager shakeup, In the hedge fund world, bigger is still better[more]

    Manager admits spin used to hide poor performance From … Colin McLean, managing director of SVM Asset Management, told FTAdviser that fund managers underperform all the time, so stories are often needed to mask or explain this. “People need to build a good framework