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Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third
consecutive year of decline, while fund liquidations saw their first
drop since 2010, according to the latest HFR Market Microstructure
Industry Report released by industry data provider HFR. According to the
report, hedge fund launches totaled 1,040 for 2014, a
decline of 20 funds from the 1,060 funds launched in 2013.
It added that while launches have trended in a narrow range in recent
years, they remain well below the peak of 2,073 funds launched in 2005,
though nearly double the local trough of 659 launches in 2008.
"Despite the global hedge fund industry having grown to a record capital
level of $2.85tln, the competitive environment to launch new funds
continues to be challenging, and funds which fail to perform are
vulnerable to investor redemptions and, ultimately, closure," stated
Kenneth J. Heinz, President of HFR. "In order to be successful, new
hedge fund launches must offer compelling, innovative strategies,
favorable liquidity and fee terms, top quality structures and services
providers, and most importantly, generate strong realized performance.
New funds which are able to meet these demanding requirements are likely
to emerge as a new generation of industry leaders that drive performance
gains and industry capital growth in coming years."
Liquidatio...................... To view our full article Click here
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