Monday, July 15, 2024

Hedge fund launch market update: June 2023

  • New hedge fund launch activity rises in June from May dip
  • AFI members have exclusive access to the rolling tracker
  • You can also follow our LAUNCHES section and join our free email list for updates.

Hedge fund launch activity rose in June and the outlook is holding steady despite macro turbulence, underpinned by a cluster of high-quality names coming to market.

Eleven names were added to AFI’s curated launch tracker in June, while 75 Form D fundraising notices were filed with the SEC, both marking increases on the month prior.

Hedge Fund Research released data showing there were 93 launches in the first quarter, slightly down on Q4, but continuing the recovery from Q3 when just 71 funds launched — the lowest figure since 2008.

In the 12 months to 31 March, HFR tracked 340 fund launches and 547 closures. Q1 closure numbers were down on the quarter prior, however.

“The steady level of new fund launches combined with the decrease in liquidations indicates that institutions are increasing commitment to hedge funds as they seek to pare back high beta equity and illiquid private equity holdings in favor of opportunistic, specialized, defensive portfolio positions,” said Ken Heinz, president of HFR.

He identified increasing interest in “multi-strategy inflation trading teams, and on technology, AI, and cryptocurrency exposures.”

It has also emerged that Bobby Jain, former co-CIO at Millennium, is reportedly bringing on board Robert Barton of Bank of America as COO in what would be the first major appointment for his upcoming new firm, which could be the biggest of 2024.

Any new firm by the multi-strat specialist may potentially rival ExodusPoint as the biggest hedge fund start-up in history.

Members have exclusive access to the tracker.