Hedge fund launches drop as sector contraction continues

Number of active funds falls below 10,000

Jayna Rana
clock • 2 min read

The number of hedge fund launches dropped in Q3 while the number of fund liquidations picked up pace.

New launches amounted to 170 in between July and August this year, down from 200 in the previous quarter and from 269 in Q3 2015, according to the latest HFR Market Microstructure report, This the lowest number of launches since Q1 2009 and marks the fourth consecutive quarter of net contraction in the overall number of active funds. A total of 576 funds were launched in the first three quarters of this year, a decrease of over 200 from the 785 launches over the same period last year. Hedge fund liquidations were also up last quarter, rising to 252 from 239 in Q2, though almost in lin...

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