Launches & Closures

New hedge fund launches: never mind the quantity, feel the quality

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New hedge fund launches in Europe are still at record low levels, but the average size of the start-ups is high and the quality of the new generation of funds coming through is impressive

If – as they say – the night is darkest before the dawn, then the results of the latest EuroHedge half-year new fund survey should indicate that the European hedge fund industry’s post-crisis new-launch trough must be somewhere near its bottom.

The first-half 2012 survey by the EuroHedge data and research team presents a stark picture of a new-fund-launching environment in Europe beset by market volatility, by regulatory uncertainty, by investor caution and by escalating business start-up costs.

More than anything, though, the start-up environment remains plagued by the ever-present and all-encompassing Eurozone political and financial crisis that