- Advertisement -

Related

New Hedge Fund Launches Rise

- Advertisement -

Stockholm (HedgeNordic) – During the second quarter, 86 new hedge funds opened their doors, up from 69 launches in the first quarter. No CTAs were launched during the previous quarter, which “could be a knock-on effect of underperformance in 2018,” according to Preqin’s latest quarterly update on the hedge fund industry.

Europe-based funds accounted for 36 percent of hedge fund launches in the second quarter, up from 23 percent in the first quarter. Over the previous four quarters, new hedge funds have steadily shifted their focus towards more region-specific opportunities in developed markets, away from having a broader global emphasis. Europe-focused funds accounted for 12 percent of all launches in the second quarter, up from five percent in the prior quarter. Funds focused on North America, meanwhile, made up 23 percent of all launches last quarter, compared to 11 percent and 18 percent in the third and fourth quarter of last year, and 20 percent in the first quarter of 2019.

Following the strong performance of global equity markets in the first quarter, equity-focused hedge funds accounted for the highest share of all hedge fund launches in the second quarter. During the quarter, equity funds constituted 45 percent of all launches, up from 41 percent in the first quarter and 39 percent in the final quarter of last year. Macro strategies represented 12 percent of all launches in the second quarter, up from three percent in the first quarter. “With more volatility potentially looming from Brexit and an escalating US-China trade war,” writes Preqin, macro strategies “could be better positioned to navigate volatile market events.”

This year’s Q2 edition of the Preqin Quarterly Update: Hedge Funds can be found below:

Photo by Jungwoo Hong on Unsplash

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

Diversification That Comes From Somewhere Else

Insurance-linked investments offer something increasingly difficult to find in institutional portfolios: return drivers that are fundamentally different from those behind equities and bonds. At...

Reinforce, Don’t Replace: Carrying the 60/40 Through the Fragile Decade

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Despite its ambiguous origins, the 60/40 remains the default portfolio for investors approaching...

Varma: Practical Considerations for Embracing a Total Portfolio View

Finland’s Varma is one of several large Nordic asset owners that has been moving towards a more holistic view of the portfolio – some...

Thinking Outside the 60/40 Box: How Active and Dynamic Commodities Can Complement Bonds

Bonds helped investors to diversify equity between about 2000 and 2021, which more than covers the entire career of many allocators. Since 2022 bonds...

60/40 – Don’t Count On It

By Harold de Boer at Transtrend: Cows produce milk. Every day again. That’s the fixed income for the dairy farmer. Bulls don’t produce milk....

Baillie Gifford: Emerging Markets Are Moving Beyond the Macro Cycle

For decades, emerging markets have largely been viewed through a macro lens: a bet on a weaker U.S. dollar, rising commodity prices and stronger...

Allocator Interviews

- Advertisement -

Voices

Request for Proposal

- Advertisement -