•  
• Tweet
•  
•  
•         Track Keywords
•  
• 

In the week ending March 31st 2023, the HFR Market Microstructure Report revealed that new hedge fund launches were on the rise in 4Q 2022 as the industry headed into 2023, rising from the lowest level since 4Q 2008 in the prior quarter as investors positioned for increased likelihood of economic recession and prior to a sharp rise in financial risks in banks associated with the sharp increase in interest rates over the past year.

The estimated number of new hedge fund launches increased to 96 in 4Q22, an increase from the historic low of 71 launches in 3Q22, which had represented the lowest launch rate the depths of the Global Financial Crisis in 4Q08. The number of hedge fund liquidations was steady over the prior quarter, as an estimated 144 funds closed their doors in 4Q22. For the full year 2022, an estimated 432 total new hedge funds launched, while an estimated 571 funds liquidated.

Meanwhile, after eleven straight months of redemptions, hedge fund industry flows reversed course in January as the industry posted $3.94 billion worth of net inflows, equivalent to about 8 basis points in asset growth, according to the Barclay Fund Flow Indicator. A $151.82 billion trading profit in January brought total hedge fund industry assets back over the $5 trillion USD threshold to settle at $5.05 trillion.

In new launches, Boston-based growth equity firm Parthenon Capital has closed its seventh fund on $4.5 billion. The fund exceeded its initial fund target of $3.5 billion; Scottish Widows has launched four new funds aiming to direct a total of GBP1.4bn ($1.7bn) of pension investment into s......................

To view our full article Click here