After a long dry
spell, fund launches are finally springing up again.
New American hedge funds that started in 2010 and ended the
year with at least $50 million pulled in a combined $17.40
billion, a 17% jump over the amount new funds garnered in 2009.
At least 59 new hedge funds managing a minimum of $50 million
in assets began trading in 2010, compared with 53 the previous
Still, 2010's total is well shy of the $23.17 billion
reached in 2008 and less than half of the record $40 billion
amassed in 2004, the year AR started tracking the biggest new
fund launches. And 2009's total, $14.89 billion, was the worst
on record since AR's biannual survey began.
Investors, still cautious after 2008, remain skittish about
backing brand-new managers, and raising money is still far more
challenging than it was before 2008,...