Wed, May 4, 2016
A A A
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n