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Laxman Pai, Opalesque Asia: New hedge fund launches hit an 18-year low during 2018. The fund liquidations also declined during the year, hitting their lowest point since 2007.
According to Hedge Fund Research (HFR) report, new hedge fund launches fell to conclude 2018, as the number of 4Q18 launches totaled only 111 in the volatile quarter, a decline of 33 over the prior quarter and a decline of 79 over 4Q17.
An estimated 561 hedge funds launched for the full year 2018, representing the lowest launch total since 2000. 4Q18 represents the second consecutive quarter in which liquidations exceeded launches, reversing a four-quarter trend of net growth in the number of funds, it said.
Fund liquidations rose in 4Q18 to an estimated 215, the highest level since 2Q17, when 222 funds closed.
Despite the uptick of liquidations at year-end, the total number of fund closures declined in 2018, as 659 funds liquidated for the year, representing a decline of 125 from the 784 funds that closed in 2017.
The calendar year liquidation total also represents the lowest closure total since an estimated 563 funds closed in 2007.
HFRI Asset Weighted Composite Index fell -2.37%
The HFRI Asset Weighted Composite Index (AWC) fell -2.37% in the volatile 4Q18, as US equities declined -13.5%.
The trends of hedge fund outperformance over equities, as well as larger hedge fund outperformance industry-wide dominated 2018 as the HFRI AWC Index fell only -0.67 % f...................... To view our full article Click here
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