Launches & Closures

New launches in 2011 stay depressed as climate deteriorates in second half


New hedge fund launches in Europe remained at low levels in 2011 against a backdrop of volatile markets and extreme political and macro uncertainty. But the quality of many of the new funds coming through is the highest for many years – and the pace is picking up again

Acute macro-economic and political uncertainty, wildly volatile financial markets and a fast-darkening overall business environment in Europe in the latter part of the year all combined to create a dismal overall climate for launching new European hedge funds in 2011, with the numbers of new start-ups hitting their lowest levels since 2002.

That is the finding of the latest annual new fund survey conducted by the EuroHedge data and research team – which found that just 116 new European hedge funds launched in 2011, raising combined assets of some $11.17 billion.

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