Most New Quant. Funds Launched Last Year, More Expected This Year

Dec 3 2012 | 11:31am ET

Quantitative hedge funds haven't had the easiest time over the last few months, except when it comes to getting off the ground.

A record number of quant. funds debuted last year, 187, and that total is expected to be exceeded this year. According to Preqin, it has already noted 95 new quant fund launches this year, even with data that typically sees a six- to nine-month lag.

Total hedge fund launches in the first quarter of this year were up 40% from the year-ago period.

"We expect 2012 numbers to exceed those of 2011," Amy Bensted, head of hedge funds at Prequin, told the Financial Times.

While those new funds seem to have no trouble raising enough to get off the ground, they're likely to be disappointing investors. The average systematic fund is down more than 3% this year, according to Hedge Fund Research, while the average hedge fund is up.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...