Tue, May 3, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFR: Hedge fund launches accelerate (260 in Q3) as managers embrace transparency, Ucits III

Wednesday, December 15, 2010
Opalesque Industry Update - Liquidations decline by over 30 percent as risk tolerance returns; Incentive fees continue to decline

Strong capital inflows and a return of investor risk tolerance contributed to an increase in new hedge fund launches in the third quarter of 2010, while investors continued to exhibit a clear preference for transparency, liquidity and UCITS III compliance in their allocations, according to data released today by Hedge Fund Research, Inc. (HFR), the leading provider of hedge fund industry data.

New hedge funds launches increased to 260 in 3Q 2010, up from 201 launches in the prior quarter. For the trailing 12 month period, 945 funds have launched, the highest 12 month total since the period ending 2Q 08.

Hedge fund liquidations continued to decline, falling to 168 in the quarter, slightly below both the 177 liquidations of the prior quarter. Through 3Q, 585 funds have liquidated in 2010, representing a decline of 31.8 percent over the same period in 2009. The third quarter of 2010 marks the fifth consecutive quarter in which hedge fund launches have exceeded liquidations.

Equity Hedge, Macro strategies see most launches; UCITS III compliance gains traction

New launches are more consistently conforming to investor preference for liquidity and lower costs. The largest number of new launches occurred in Equity Hedge and Macro strategies, while the fewest occurred in Event Driven and Fund of Hedge Funds. In addition, nearly a quarter of new launches comply with UCITS III guidelines, which incorporate liquidity requirements, restrictions on instruments and leverage, and emphasize the role of the local market regulator.

The average incentive fee fell by 11 basis points to 19.0 percent, the second largest quarterly decline in incentive fees since 2008, while the average management fees remained at 1.58 percent. Both management and incentives fees charged by fund of hedge funds declined for the quarter.

“The trends in new hedge fund launches clearly reflect powerful dynamics currently reshaping the landscape of the industry and redefining the relationship between investors and managers,” said Kenneth J. Heinz, President of Hedge Fund Research Inc. “These trends are likely to continue as the hedge fund industry appeals to an increasingly wider, more global and more institutional investor base.”

(press release)


Hedge Fund Research, Inc. (HFR) is the global leader in the alternative investment industry. Established in 1992, HFR specializes in the areas of indexation and analysis of hedge funds. HFR Database, the most comprehensive resource available for hedge fund investors, includes fund-level detail on historical performance and assets, as well as firm characteristics on both the broadest and most influential hedge fund managers. www.hedgefundresearch.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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