European Hedge Fund Launches Fall 45%

Jul 28 2008 | 11:33am ET

Hedge fund launches in Europe fell 45% to a six-year low in the first half, according to a new report.

In the first six months of the year, just 106 funds debuted, 84 fewer than the year-earlier period’s 190, according to EuroHedge. The 106 funds are the lowest total of first-half launches since 2002, when just 84 funds hit the market.

The new funds raised 30% less than last year’s launches, as well, bringing in US$10.8 billion, compared to US$15.5 billion in the first half of 2007.

“The global credit crunch and extreme turbulence across the financial markets have resulted in a sharp decline in the number of new hedge fund launches and the capital raising climate has become increasingly tough,” Neil Wilson, editorial director of Hedge Fund Intelligence, which publishes EuroHedge, said.

On the bright side, those hedge funds that did get off the ground during the first half are larger than last year’s new funds. The average hedge fund launch in Europe from January to June boasted US$101.9 million in initial assets, compared to US$81.8 million last year. And European hedge funds are not closing at a faster rate than previous years, with 53 closing their doors. Full-year closure rates have ranged from 110 to 126 over the past three years.

Multi-strategy and mixed-arbitrage launches were most popular with investors, taking in $4.5 billion of the new money. European long/short fund launches totaled $2.1 billion.

 


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.