New funds survey

Thu Feb 1, 2007

Launches raise $31 billion, with six billion-dollar-plus funds

With markets unpredictable and the collapse of a multibillion-dollar hedge fund giving investors the jitters, new fund launches slowed for the second year in a row. Last year, the 86 largest hedge fund launches raised $31 billion, down from $34 billion raised by 82* funds during 2005 and $40 billion by 81 funds in 2004.

Most of the launches were in the first six months. But after the equity market meltdown last spring and summer hammered hedge funds, and Amaranth Advisors went bust last fall, raising money got harder for new funds. Only 29 funds raising at least $50 million - the minimum required to be included in the Absolute Return New Funds Survey - launched during the second half of the year. These funds raised a mere $6.2 billion, or 20% of the total for the full year.

Growth in assets at...

ISSN: 2151-1845 / CDC10004H

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