Wednesday, 28 January 2015
Last updated 6 hours ago
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
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…