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From Kirsten Bischoff, Opalesque New York:

Hedge funds’ strong performance through 2009 has been rewarding for those who took a long-term view of the markets as August brought the sixth straight month of positive returns for most strategies.

Investors who were, up until now, waiting on the sidelines for the markets to stabilize, may be fearful of missing the gains hedge funds have been posting, and August showed an asset boost of $4.5bln into hedge fund coffers (according to Eurekahedge).

“We are seeing much more activity than we have in the past six months,” Jack McDonald, President and CEO of Conifer told Opalesque. Conifer provides middle and back office solutions for hedge funds (and has most recently added a prime brokerage platform) and has seen a noted increase in pre-launch activity.

300 new launches in 2009 Although 400 funds shuttered in 2009, there was almost always another launching to take its place and 300 new funds have emerged throughout the hedge fund industry rally.

McDonald sees this trend continuing and Conifer expects to support a number of new funds to launch over the coming months, including spin-offs that have been in the planning for some time as well as high profile managers re-emerging again after shuttering funds in 2008 and early 2009. “Performance is strong, cash is on the sidelines and it is the right time,” McDonald says.......................

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