Within 3 months through September, there were only 240 new funds that opened, which was the least number of launches since last year’s third quarter when only 233 launched for business. During 2014’s second quarter, 285 new funds opened.
Although there were only a few blockbuster names that have spun out from previous employers, investors seemed to blame the slow pace of openings on the difficulty in raising money. Startups are reviewed by investors longer than usual.
Meanwhile, assets that are managed by the company reached 2.82 trillion dollars during the third quarter, a record-high, according to HFR. During the first 9 months, there were 814 hedge funds launched, almost the same pace compared last year.
The firm’s data also indicates that staying in the business is much tougher than last year as there were 661 funds that closed during the first 9 months this year, compared to the 608 funds that shut down the same period a year ago. HFR also said that the closures during the past 12 months totaled to 957.
Kenneth Heinz, HFR president said that as long as the international industry capital is at a record level, the continuous competitive market pressures will shape the changing landscape of the entire hedge fund industry.