Available Hedge Fund Seed Capital Drops In Q3/Q4

Nov 2 2009 | 11:56am ET

While anecdotal evidence suggests that hedge fund launches are picking up in the second half of the year, the amount of seed capital available from institutional investors has dropped by 44%.

According to Acceleration Capital Group, which surveyed 50 top institutional hedge fund seeding firms globally, the amount of seed capital available in Q3/Q4 of this year is $1.32 billion compared with $2.35 billion that was available in the first half of the year.

The survey also reveals that 52% of hedge fund seeders currently prefer investing in distressed and global macro strategies, with equity long/short coming in third at 48%.

The list of top five preferred strategies was rounded out by volatility trading (38%) and event driven (38%) funds. See full report below.

Hedge Fund Seed Capital Report For Q3/Q4 2009

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…