Tuesday, January 31, 2023

HF launches fall to 2008 crisis levels

New hedge fund launch numbers have declined to levels last seen during the financial crisis of 2008, as market volatility delays plans and dents investor appetite.

Hedge Fund Research put the Q2 launch figure at 80, down from 185 in Q1 and the lowest industry figure since 56 launched in the fourth quarter of 2008.

“Risk-off sentiment drove investor risk aversion, with investors maintaining exposures to established funds through the current volatile market paradigm,” said Ken Heinz, president of HFR.

The news comes in the week it emerged Ahmet Arinc, the former FX chief at Deutsche Bank, was closing London-based Cirera Capital to join multi-strategy giant ExodusPoint Capital Management.

The closure of the $500m EM macro firm after four years is another sign the multi-strat platforms are hoovering up industry talent. As operational costs rise, top traders are increasingly tempted by the opportunity to focus solely on trading.

Read more: Schonfeld, D.E. Shaw and Sachem Head on hedge fund performance