Newly Founded Hedge Fund Firms see Jump, while overall New Fund Launches are Down in 2013

September 2nd, 2013
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After hitting a peak in 2010, new hedge fund product launches have been steadily declining and are on pace in 2013 to record the lowest number of new launches in nearly a decade. According to Prequin, the decline in hedge fund launches has not slowed the growth of newly founded hedge fund firms entering the market, as more than 200 are expected to set up shop in 2013, roughly equivalent to the number of new firms established in 2011 and 2012.

In the U.S., the ranks of new hedge fund firms continues to swell as a result of proprietary desk spin-offs from the banks. Prequin cites as a reason for the disparity in growth the marked increase in new regulations in Europe as well as longer lag time between establishing a new firm and launching its first hedge fund. New hedge fund firms are spending more time exploring investment opportunities and establishing track records before launching their hedge funds.

Notably, HedgeTracker releases a Top U.S. Equity Emerging Manager Hedge Fund Ranking List on a quarterly basis using hedge fund firms’ overall U.S. equity assets. The Emerging Hedge Fund rankings include firms that were launched in 2008 or later. To view the list in its entirety, please visit Hedge Tracker’s Hedge Fund Portal.
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Launches and Hedge Fund Closings

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