HFR: Over 1,000 Hedge Funds Launch In 2011

Apr 10 2012 | 8:57am ET

There were 1,113 hedge fund launches in 2011, including 270 in Q4—the highest annual total since 2007, according to Hedge Fund Research.

A total of 775 funds liquidated in 2011, including 190 in the fourth quarter. That number was up slightly from 743 liquidations in 2010.

The total number of funds rose to 9,523 in 2011, while total hedge fund industry capital rose by 3% to $2.02 trillion.

The bulk of the new funds in 2011 were equity hedge (479) and macro (265). The macro number is the highest since HFR began tracking this in 1996.

On the other hand, 293 equity hedge funds liquidated in 2011, the highest number since 651 funds closed in 2008.

Fund of hedge fund closures, at 215, were their lowest since 2007.

In terms of geography, more funds were launched in the U.S. than Europe, while liquidations were higher in Europe.

“While some have suggested that increased regulation may deter new fund launches, many hedge funds are launching not only as a result of increasing investor risk tolerance, but also as a result of these regulatory changes to trading activities and risk oversight at financial institutions. The hedge fund industry has and will continue to expand and innovate to offer more sophisticated and transparent strategies to meet the requirements of institutional investors,” said Kenneth J. Heinz, president of HFR, in a statement.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

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

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note