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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…