Pedigree holds no guarantee for new funds

By Rob Copeland

Tue Aug 14, 2012

Some 34 Americas hedge funds raised $11 billion in the first half, but most of the money was clustered in a handful of managers.

Arbalet's Jennifer Fan raised $650M.
(Photo: Bloomberg)

It is a tale of haves and have-nots.

At first glance, the environment for new hedge fund launches in the Americas appears robust. Some 34 new funds raised $11 billion in the first half of the year, eking past last year’s total of $10.3 billion1.

As was the case last summer, one mega-launch comprised nearly half of the total, suggesting strong appetite for the right manager at the right time. That equity-focused multistrategy fund, the Renaissance Diversified Alpha Fund headed by Peter Brown and Robert Mercer, burst out of the gate with $3.5 billion in March and has since blown past $5 billion, helped by strong firmwide returns and performance/management fees of half the industry norm (see full details here).

Second place went to Citadel spinoff Encompass Capital, the energy equities fund helmed by Todd Kantor, which started...

ISSN: 2151-1845 / CDC10004H

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