Sunday, 21 December 2014
Last updated 8 hours ago
Jul 8 2008 | 11:04am ET
There are fewer new hedge funds this year, but they are bigger, according to a new survey.
According to Absolute Return magazine, 35 funds began trading during the first six months of the year with a total of $19.5 billion. The number of new funds fell by more than 50% from 72 during the same period last year, but those 35 funds raised 40% more money at launch than did last year’s 72.
Mirroring the hedge fund industry as a whole, the very biggest hedge fund launches are getting bigger: The top five funds making their debut in the first half raised $13.7 billion, 70% of the $19.5 billion total. Each raised at least $1 billion.
Goldman Sachs alone accounted for more than 40% of the capital raised in its newest funds. GS Investment Partners, run by former proprietary trading desk chief Raanan Agus, manages $7 billion—more than three times as much as the second-biggest launch of the year—while its new vehicle aimed at capitalizing on the credit crisis, the Mortgage Credit Opportunities Fund, manages $1.1 billion.
The second-biggest launch of the first half was Greenwich, Conn.-based Conatus Capital Management’s Conatus Capital Partners at $2.3 billion, followed by Lone Pine Capital’s emerging markets Lone Dragon Pine fund at $1.8 billion. Chicago-based Highliner Investment Group’s Alyeska Fund was fourth at $1.5 billion.
Most of the new funds pursue an equity long/short strategy, with a fair number of mortgage-backed securities and distressed funds also launching.
Rounding out the top 10 fund launches are SIR Capital Management’s Hedge Equity Master Fund at $700 million, Bellman Walter Capital’s Global Fund at $650 million, and KnightHead Capital Management’s Master Fund, Obrem Capital Management’s Obrem Capital and One William Street Capital’s Master Fund with $500 million each.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.