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Opalesque Exclusive: Review of hedge fund launches, closures, trends, and regulatory and legal events - week 38 By Benedicte Gravrand, Opalesque London: A roundup of last week’s hedge fund launches, closures, index performance, trends, regulatory, legal and financial events pertaining the alternative investments world.

We heard of new launches from Front Street, Samena Capital, Credit Agricole A.M., Crystal Ocean, Tai Tam Capital, Pappajohn, Thames River, DragonBack Capital, Harvest Volatility, Shen Yi Financial Advisors, ARCH Africa and Land & Buildings.

Lehman`s LibertyView closed its master fund and Toronto’s Lionhart froze redemptions on two ailing hedge funds. HFR reported that the first half of 2008 saw 350 hedge fund liquidations (up 15%) and that the second quarter of 2008 saw 180 liquidations and 240 launches. Risk Analytics’ VP commented: “We are going to see five hedge funds fail for every bank.”

The Credit Suisse/Tremont, Eurekahedge, Barclay, Scotia, EDHEC hedge fund indices posted negative performances for August but the Barclay CTA Index was up 0.11%.

The press reported on the following trends: Desperate companies were turning to ‘usurious’ hedge funds; hedge funds were growing more wary of short financials bet; their cash holdings might be at all-time high (at 30%). Kass commented that this was a time to watch and not a time to play. And universal banks were set to dominate investment banking following the mergers.

On the M&A scene, global asset manager Rock Creek Group took strategic stakes in alternatives manager Evolution Capital Management.

Hedge funds were knee-deep in the credit crisis last week as they were dealt another blow by the financial institutions’ failures, although many published press releases saying they had no exposure either to Lehman or to AIG. Some targeted UK’s Halifax and HBOS as shares crashed. M......................

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