Saturday, 20 September 2014
Last updated 1 day ago
Jun 16 2009 | 12:39pm ET
The hedge fund attrition rate slowed significantly in the first quarter, but more funds of hedge funds than ever called it quits, according to Hedge Fund Research.
Some 4% of hedge funds, 376, closed their doors during the first three months of the year, HFR said. While that’s less than half of the fourth quarter’s record 778, it still is the second-highest attrition rate ever recorded.
Hedge fund redemptions also slowed during the quarter. Investors pulled $103 billion from the industry, down from $152 billion in the final three months of 2008.
What’s more, more new hedge funds debuted between January and March than since the second quarter of last year. About 150 new funds were launched, according to HFR.
“Although risk aversion began to recede from historical levels in [the first quarter], the structural consolidation which has been ongoing for several quarters continued,” Kenneth Heinz, HFR’s president, said.
If such numbers are encouraging for single-manager funds, the news is downright disastrous for funds of funds: Nearly 200 coughed and died last quarter, a record. The fund of funds attrition rate doubled to 8% from the fourth quarter, no picnic itself.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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