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In the week ending May 12th 2023, Reuters reported quoting Preqin that hedge fund launches in 2023 are at their lowest level globally since 2017 against a backdrop of banking upheaval and bouts of market volatility. So far this year, 180 funds have started or plan to start trading, Preqin said. Untried trend managers in particular have found capital raising tough given market turbulence which has forced many established macro and trend-following funds to cut positions from bad portfolio bets.

Also looking back to 2022, the number of hedge fund launches in Europe also declined last year amid poor performance and the continued strong growth of multi-strategy multi-manager firms, according to UK-headquartered data provider With Intelligence. Fifty-seven new funds began trading in Europe in 2022, down from 74 in 2021, which was boosted backlog of start-ups delayed by the coronavirus pandemic. Just 45 launches got going in 2020. Last year's launches managed assets of $6.8bn at year-end, the lowest total since 2016, when new European funds raised $6bn.

Meanwhile, hedge funds fared well despite the volatility, with single-manager funds, funds of CTAs, alternative mutual funds, UCITS, and funds of hedge funds all in positive territory, quarter on quarter, said Preqin Quarterly Updates Q1 2023. CTAs were the only exception not to make up ground in Q1. Positive signs were in evidence during the first quarter of 2023, including bond markets rebounding and equity indices improving on the previous quarter in many regions. But banking system disruption following rising interest rates and inflation added to the overall instability.

Rising inflation is changing how ......................

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