Mon, Jul 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers June 2014

NEW LAUNCHES: Newest maiden hedge fund launches

Hedge fund launches rise and rise

Hedge fund launches rose through early 2014 as new launches in Equity Hedge and Event Driven continued to attract new investors, and total hedge fund capital rose globally to a record $2.7 trillion at the end of the first quarter. New hedge fund launches totaled 289 in 1Q14, up from 244 in the prior quarter, and the highest total since 297 funds launched in 1Q13, as reported in the latest HFR® Market Microstructure Industry Report, released by Hedge Fund Research. Hedge fund liquidations totaled 272 for 1Q14, a decline from the 296 closures in the prior quarter but still the second highest quarterly liquidation total since 2Q09.

New fund launches were spread across all strategies, with the highest number of new funds in Equity Hedge and the greatest quarter-over-quarter growth in Event Driven strategies, with both driven by investor interest in the powerful wave of investor interest in Fundamental Value, Special Situations and Shareholder Activist strategies.

Equity Hedge launches totaled 116 in 1Q14, which also experienced the highest number of launches in 2013, with both representing approximately 40 percent of all launch activity. Event Driven launches increased to 56 for 1Q14, nearly 20 percent of all launches; in 2013, ED accounted for only 7 percent of new launches. Since 2007, the number of funds dedicated to Shareholder Activism has increased from 52 to 71, with these collectively managing over $100 billion in investor capital.

Regionally, European located hedge fund launches declined as a percentage of the overall total with 121 in 1Q14, representing 42 percent of all hedge fund launches. In 2013, 581 European located funds were launched, nearly 55 percent of the 1,060 launches in the calendar year...

Average management fees across the entire hedge fund industry declined 2 basis points in 1Q14 from the prior quarter to 1.52 percent, while average incentive fees fell 28 basis points to 17......................

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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag