Launches again raise more than $31 billion, with Paulson pushing the total above 2006's numbers
By Eric Baum
The pace of hedge fund launches last year started at a gallop, and despite the subprime credit debacle that rippled throughout the investment world it slowed down only slightly during the second half. In fact, the triple-digit performance gains by one new fund shorting subprime - Paulson & Co's Credit Opportunity II fund - pushed assets held by new funds at yearend above that in 2006.
The largest 81 launches in the U.S. last year had $31.5 billion by yearend, up slightly from the $31 billion held by new funds at the end of 2006, with $3 billion of the increase coming from the Paulson fund's jump during the year. But the total new fund assets are still down more than 20% from 2004, when 81 new openings amassed $40 billion. In 2005, new fund...