Monday, May 27, 2024

Hedge fund launch numbers fall in Q4: HFR

New hedge fund launches fell in the fourth quarter but numbers rose year-on-year in 2023, with excitement building around numerous major launches in the pipeline.

The estimated number of new hedge fund launches in Q4 fell to 85, bringing the number for the year to 438, according to HFR, which tracked 415 closures during the period.

Hedge fund fees concluded 2023 near historic lows, though shorter term trends show increases into year end, the data provider said.

Launches were led by multi-strategy funds, with the Citadel and Millennium background of many major planned firms, most notably Jain Global, catching the eye in recent months.

“Hedge fund performance and growth trends shifted into year end 2023, from being dominated by inflation and interest rates, to focusing on growth (both industry and improving broader economic) with an increased emphasis and impact on multi-strategy growth and exposures to cryptocurrency and AI technology,” said Ken Heinz, president of HFR.