Below are infographics from Preqin's 2016 Global Hedge Fund Report on the emerging manager landscape, together with charts on launches and closures from The Economist and Bloomberg. Emerging managers: landscape, investors interest, launches

Source Has the hedge fund industry reached its peak?

By the end of 2015, the hedge fund sector has mushroomed to include nearly 9,000 funds managing roughly $3 trillion, reports The Economist. But a recent wave of fund closures, and the expectation that more will follow, suggest the industry's era of stratospheric growth may be in the past. nm-feb-2016-11.png

The gap between closures and launches is narrowing (see chart). In 2016, for the first time since the worst of the financial crisis, there may be more closures than launches, says Amy Bensted of Preqin, a data provider.

With investors becoming increasingly risk-averse, knee-jerk redemptions have become more common, the paper says. For a small fund, if just one investor pulls out that can be the end of the business: 75% of the funds that closed in 2015 managed less than $100m. The number of hedge fund companies started in 2015 dropped to 223, the lowest since 2002, according to data from Preqin

Source

Smaller funds returned on average -2.5% in January

Hedge funds reported their worst monthly return since May 2012 after declining -2.60 in January, with macro hedge funds the only top-level strategy to post positive r......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.