Sat, Nov 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers June 2013

Launches & New Funds' News

The number of new hedge fund launches increased for the fourth consecutive quarter in 1Q13, according to the latest HFR Market Microstructure Industry Report, released by Hedge Fund Research (HFR). Hedge fund launches in 1Q13 totalled 297 funds, the third highest quarterly launch total since the beginning of 2008, narrowly trailing only 1Q12 (304) and 1Q11 (298). Hedge fund liquidations declined to 196 in 1Q13 from 211 and 238 in each of the prior two quarters, respectively. Equity Hedge strategies led 1Q hedge fund launches with 132 new funds. Macro hedge fund launches totalled 93, while Relative Value Arbitrage RVA saw just 26 new funds.

Hedge fund launches in Europe exceeded those of the U.S. in 1Q13, with 180 new funds launched by European-located managers in 1Q versus nearly 100 by US-based firms.

Average management fees for funds launched in 1Q13 was 32 bps lower than those funds launched in 2012, while average incentive fees for 1Q13 launches were 17.43%, a decline of 31 bps from 2012 launches.

"The strong trend in new launches is consistent with the trends in rising investor risk tolerance and overall hedge fund industry capital reaching record levels," said Kenneth J. Heinz, President of HFR.

We recently heard of those ex-hedge funders striking out on their own:

  • Miaodan Wu, a former portfolio manager at SAC Capital Advisors, is preparing to launch his own hedge fund in Hong Kong to bet on price swings in financial securities. Wu was among at least seven SAC Capital Hong Kong staff who left this year. His hedge fund, named Bach Option, will launch by the end of 2013, said Reuters.
  • ......................

    To view our full article please login

    This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
    New Managers
    New Managers
    New Managers

    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. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

      From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

    2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

      From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

    3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

      From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

    4. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

      George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

    5. People - Bessemer hires Frank Frecentese for hedge fund advisory role[more]

      From WSJ.com: Multi-family office Bessemer Trust has hired Frank Frecentese to help build out its business advising wealthy families on hedge-fund investments, nabbing him from Societe Generale’s Lyxor asset management arm. Mr. Frecentese, who was the head of hedge-fund investments at Citibank