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Opalesque Roundup: New hedge fund launches rose while liquidations declined sharply: hedge fund news

In the week ending January 10th 2025, HFR reported that new hedge fund launches rose while liquidations declined sharply heading into 4Q24, as investors positioned for an evolution of the geopolitical and economic risks which had defined 2024. The estimated number of new funds launched in 3Q24 increased to 118, up slightly from the prior quarter estimated launch total of 111, while liquidations in 3Q posted a sharp decline to only an estimated 82 closures, the lowest quarterly liquidation total since 2Q06.

Hedge funds gained in December to conclude a volatile year, navigating election and geopolitical risks, falling but persistent inflation, and surging cryptocurrency prices, HFR said.

Meanwhile, much like their peers in the multistrategy world, quant hedge funds had a strong 2024. Algorithm-driven trading firms mostly delivered double-digit returns across different quant strategy types, including "quantamental" funds that blend systematic and human-run qualities into one and trend-following offerings.

Crypto hedge funds also made big bucks last year on the back of a $1.7tn market rally. Tephra Digital, Pythagoras Investments, Eltican Asset Management and Fasanara Digital cashed in on soaring crypto prices last year. US-based Tephra Digital, which is backed by Jefferies' Leucadia Asset Management, gained 100.2% in 2024, according to people familiar with the matter. The crypto hedge fund has $125m in assets under management.

In new launches, Coatue Management alumnus Aaron Weiner is set to launch his own hedge fund with $3 billion from Millennium Management, according to people familiar with the matter; FTV Capital, a venture capital firm with a fintech focus, has closed its ......................

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