Given the carnage in the financial markets the year before, 2009 did not start out as a promising year for start-ups, but by year-end, a whole slew of funds had been successfully launched. Several of these were of very high quality, being started by managers with significant experience and track record. With most of these start-ups now having a six to 12-month track record, it is an interesting time to study the landscape and see how they are faring.
Some were the fruit of plans that had been shelved in the wake of the Lehman Brothers debacle. Others were started by managers orphaned by the departure of international hedge funds including Polygon, Citadel and Fortress, as they retreated from Asia.
Whether they were launched by star prop traders, bankers and spin-out managers from established hedge funds, many funds in this cohort of start-ups displayed all the right characteristics...