New hedge funds raised significantly less last year than in 2007, as hedge funds suffered their worst-ever year of performance, according to a new survey.
The Absolute Return magazine new funds survey for 2008 revealed that the largest new fund launches in the U.S. amassed a combined $23.17 billion under management in contrast to the $31.5 billion for the largest new funds in 2007 and $31 billion in 2006.
Only 35 new funds launched with more than $50 million in the first half of last year, totaling a combined $19.5 billion. Of that amount, however, $8.1 billion came from two new funds introduced by Goldman Sachs. The remaining $11.4 billion accumulated through June 2008 was well below the $14 billion held by the 72 funds that formed during the first half of 2007. The number of new vehicles was also down in 2008, with only 55 funds managing launches that amassed $50 million by year end, compared with 81 such funds in 2007.
Six funds raised more than $1 billion, compared with eight in 2007. The group included Appaloosa Management’s Thoroughbred Fund with $1.9 billion, Lone Pine Capital’s Lone Dragon emerging markets fund with $1.8 billion and Highliner Investment Group’s $1 billion market-neutral equity Alyeska fund.