More hedge funds closed than in any year since 2009 and fewer opened in any year since 2010 last year.
Just 1,060 hedge funds debuted in 2013, compared to 1,108 in 2012 and 1,113 in 2011. Last year was the worst for hedge fund launches since 2010, when only 935 funds opened their doors, according to Hedge Fund Research.
Hedge fund liquidations rose to 904 last year from 873 in 2012. It was the highest attrition rate for hedge funds since 2009, when 1,023 closed.
“Data on launches and liquidations suggests the capital-raising environment for mid- to small hedge funds continues to be challenging,” HFR President Kenneth Heinz said.