Hedge fund liquidations on decline, says study
By Aaron Siegel
March 29, 2007
investmentnews.com
While global hedge fund assets are surging, the number of hedge fund launches and liquidations are on the decline, according to a pair of hedge fund studies released today.
Assets in global hedge funds have now reached $2.079 trillion this year, marking a 30% increase compared to just over $1.5 trillion during the year-ago period, according to data complied by London-based HedgeFund Intelligence, a publisher of several hedge fund newsletters and databases.
More than 350 million hedge fund managers look after more than $1 billion each and manage a combined $1.564 trillion in assets, according to the report.
The study found that Europe is the world's fastest-growing hedge fund market, with assets reaching $460 billion in January, up 40% from $325 billion in January 2006.
Asia-Pacific hedge funds reached $147 billion, a 27% increase from $115 billion during the year-ago period.
New York leads all regions with 123 billion-dollar hedge funds, followed by London and the state of Connecticut, which had 72 and 30, respectively, according to HedgeFund Intelligence.
In another report, the number of hedge funds introduced in 2006 fell to 1,518 from 2,073 in 2005, according to Chicago-based Hedge Fund Research Inc.
The number of hedge fund liquidations in 2006 totaled 717, down 8.28%, compared to 848 in 2005, making for the second-highest attrition rate recorded by HFR since 1995 when it began tracking launches and liquidations. |
