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

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note