New hedge fund launches in the third quarter of 2022 fell lower than the prior quarter, reaching their lowest level since Q4 2008, according to new data released by HFR.
New hedge fund launches in the third quarter of 2022 fell lower than the prior quarter, reaching their lowest level since Q4 2008, according to new data released by HFR.
The latest HFR Market Microstructure Report reveals that the HFRI Asset Weighted Composite Index gained +0.5% YTD through November, indicating larger managers have outperformed smaller funds, increasing asset concentration and contributing to a challenging new launch environment.
The estimated number of new hedge fund launches decreased to 71 in Q3 2022, a decline from the estimated 80 launches in the second quarter, representing the lowest launch rate since 56 new funds launched in Q4 2008 at the depths of the Global Financial Crisis.
The number of hedge fund liquidations also declined over the prior quarter, with an estimated 145 funds closing their doors in Q3 22, down from 156 fund liquidations in the second quarter of the year.
In the trailing 12-month period ending Q3 2022, an estimated 449 total new hedge funds have launched, while an estimated 544 funds have liquidated.
