Tue, May 17, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund launches and liquidations on decline while fund performance dispersion widens significantly in 2018

Monday, March 25, 2019

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

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. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Schroders acquires European renewable infrastructure manager Greencoat Capital[more]

    Laxman Pai, Opalesque Asia: British multinational asset management company Schroders has completed the acquisition of a 75% shareholding in Greencoat Capital, one of Europe's largest investment managers dedicated to the high-growth renewable infrastructure market. The remaining 25% is owned by Gr

  3. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  4. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  5. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm