Available Hedge Fund Seed Capital Drops In Q3/Q4

Nov 2 2009 | 12:56pm 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

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...