Hedge Fund Startups Shrivel In ‘09

Feb 3 2010 | 2:32pm ET

Last year was a very good one for the hedge fund industry. It was less kind to hedge fund startups.

New hedge funds raised 36% less in 2009 than they did in 2008, as shell-shocked investors shied away from the asset class after taking a beating in 2008. All told, startups raised $15 billion last year, according to an AR magazine survey.

“There is still a reluctance of investors to part with their money,” Michaelle Celarier of AR said. “Moreover, the big issues of 2008—transparency and liquidity—continue to be major challenges for new funds.

There was not much drop off in new hedge funds with at least $50 million in initial assets, according to AR. Fifty-three debuted last year against 55 in 2008. The big decline came among the biggest funds, as only two new hedge funds launched with more than $1 billion. In 2008, there were five such funds.

Those two funds were Woodbine Capital Advisors and Roc Capital Management. The former, founded by Soros Fund Management veterans Joshua Berkowitz and Marcel Kasumovich, raised $2.5 billion. Roc, the brainchild of former Deutsche Bank global arbitrage trader Arvind Raghunathan, netted $1 billion.

10 Largest Hedge Fund Startups of 2009

Startup Assets on Dec. 31 Month Launched Strategy
Woodbine Capital Advisors $2.5 billion January global macro
Roc Capital Management $1 billion August equity market-neutral
Pia Capital Management $949 million June global macro
LDH Energy $750 million (estimated) September commodities
Realm Partners $650 million July multi-strategy/event-driven
Harbinger Capital Partners Credit Distressed Blue Line Fund $620 million April credit
Saba Capital Management $560 million August credit
Plural Investments $550 million January long/short equity
Brevan Howard Asset Management Credit Catalyst $517 million June credit
Manatuck Hill Partners $400 million JUly long/short equity

source: AR magazine


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.