- Advertisement -
- Advertisement -

At Last Hedge Fund Launches Surpass Closures

Report: Systematic Strategies

- Advertisement -

Stockholm (HedgeNordic) – The number of hedge fund launches surpassed liquidations on a quarterly basis for the first time in more than two years, as investors are regaining confidence in the sometimes heavily-criticised industry. Investor appetite for hedge funds has picked up due to improved investor risk tolerance and lower costs, pushing hedge fund industry capital to a record $3.16 trillion at the end of the third quarter.

According to the latest HFR Market Microstructure Report released by Hedge Fund Research, the number of hedge fund launches climbed to 176 in the third quarter of 2017 from 170 recorded in the same quarter of 2016. A total of 545 funds were launched year-to-date through the end of September.

The trend of decelerating closures in the hedge fund industry has picked up pace, as the number of liquidations dropped to 137 in the third quarter of this year from 222 in the previous quarter and 252 closures in the third quarter of 2016. A total of 618 funds were liquidated year-to-date through the end of September. The year-to-date number of closures in 2017 is significantly lower than the number registered last year. A total of 1,057 funds were closed in 2016, a figure that surpassed the post-financial peak of 1,023 closures recorded in 2009.

“2017 has been a recovery year for the hedge fund industry from 2016, with improved performance, exciting strategy expansion and lower costs driving new fund launches and total industry capital to a new record,” stated Kenneth J. Heinz, President of HFR.

Picture © Nito – Shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Indecap-PriorNilsson Deal Gets Regulatory Nod

Stockholm (HedgeNordic) – The Swedish Financial Supervisory Authority, Finansinspektionen, has granted approval for Indecap’s acquisition of fund boutique PriorNilsson Fonder. This strategic collaboration will...

Tidan Rides High on Normalized Market Conditions

Stockholm (HedgeNordic) – Tidan Fund, a hedge fund focused on capturing capital structure opportunities, is approaching its third anniversary this October with strong momentum....

Month in Review – August 2024

Stockholm (HedgeNordic) – Nordic hedge funds delivered solid performance during the roller-coaster month of August, with fixed-income-focused hedge funds leading the charge. The Nordic...

Danske Bank’s Multi-Asset Hedge Funds Gain Momentum

Stockholm (HedgeNordic) – In August 2022, Danske Bank Asset Management launched a hedge fund designed to capture ‘true’ alternative risk premia as compensation for...

Inspired by AP7, Carnegie Launches Leveraged Global Equity Fund

Stockholm (HedgeNordic) – As Carnegie Credit Edge comes to a close, Emil Nordström, who managed the fund’s derivatives strategy, is now steering a new...

Mandatum’s CTA Defies Trend in Tough August for Trend-Followers

Stockholm (HedgeNordic) – Trend-following managers had a tough time navigating markets in August, as evidenced by the 4.5 percent decline in the SG Trend...

Allocator Interviews

In-Depth: Commodities

Voices

Request for Proposal

- Advertisement -