Hedge Fund Launches Fall, Liquidations Rise in 3Q as Investors, Managers Position for Macro Trends in 2012 (Hedge Fund Research, Inc.)

December 8, 2011

KEYWORDS: Hedge Fund Launches, Macro Trends

Authors:

www.hedgefundresearch.com

Organizations:
  • Hedge Fund Research, Inc.

Summary:

The number of new hedge funds launches declined, while the number of liquidations rose in the volatile 3Q11, as Macro considerations surrounding the European sovereign debt crisis continued to drive financial markets and the resolution of the crisis remained unclear. According to the Market Microstructure Industry Report released today by HFR (Hedge Fund Research, Inc.), new hedge fund launches declined to 265 funds in 3Q11, a decline of 15 over the prior quarter but representing a modest increase over 3Q10. Hedge fund liquidations rose to 213 funds, an increase of 22 over the prior quarter and 45 over 3Q10. The 3Q11 liquidation total represents the highest quarterly total since 1Q10, when 240 funds liquidated, while hedge fund launches remain on pace for their highest calendar year total since nearly 1,200 funds launched in 2007.

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