Opalesque Industry Update - Hedge fund industry liquidations returned to
pre-financial crisis levels in the second quarter (2Q10), according to data
released today by Hedge Fund Research, Inc. (HFR), the leading provider of
hedge fund industry data. Led by steady performance, a return of new
investor capital and greater clarity around financial reform legislation,
hedge fund liquidations fell to 177 in 2Q10, bringing the total number of
fund closures to 417 in the first six months of 2010. For the quarter, the
fund attrition rate, defined as the number of liquidations as a percentage
of the overall number of funds, dropped to below two per cent. Funds of
Hedge Funds (FOFs) experienced the fewest number of liquidations (54) since
1Q08; since the start of the financial crisis, over 800 FOFs have
liquidated, reducing the number of FOFs from nearly 2,600 in mid-2008 to
approximately 2,100 as of 2Q10.
Fewer Funds Launched as Investor Preference for Top Firms Continues
Fund Performance Dispersion Gap Narrows "Volatility returned to financial markets in 2Q10 as investors lowered expectations of the global economic recovery," said Ken Heinz, President of Hedge Fund Research. "Despite this volatility, fewer funds have liquidated recently as a function of steady performance, improved structural integrity and renewed investor confidence in the hedge fund industry."
(press release)
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Industry Updates
HFR: Fewest fund of funds liquidations since 1Q08, performance dispersion narrows from record levels
Wednesday, September 15, 2010
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