A record $19.5 billion obscures a more ominous truth: Launches are down more than 50%, with 71% of the money at the top five funds
By Britt Erica Tunick
New hedge fund launches in the United States amassed a record $19.5 billion during the first half of 2008. Unfortunately for managers looking to strike out on their own, that figure is only a paper moon. The number of new funds with assets of $25 million or more is down by more than half, launches are being postponed right and left, and a big chunk of that $19.5 billion is Goldman Sachs capital that went to two of the firm's own fund launches.
Goldman Sachs Asset Management garnered $8.1 billion of that total - $7 billion in its Goldman Sachs Investment Partners, an equity long/short strategy, and $1.1 billion in Goldman Mortgage Credit Opportunities. Without those funds, the...