Fund launches & closures

Capital crunch: New funds survey

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As funding collapses, fund launches decline 26% in 2008 - to $23.17 billion

As funding collapses, fund launches decline 26% in 2008 - to $23.17 billion

By Britt Erica Tunick

When Monty Agarwal left fixed-income specialist III Associates in early 2008 to start a fund of his own, the outlook was sunny. The hedge fund industry had seemingly rebounded from 2007's subprime credit crisis, and Agarwal had a major seed investor lined up for his new venture, an Asia-Pacific relative-value macro fund.

But just a few weeks later, by early March, everything had changed.

"Regardless of all good intentions and all good planning, you cannot foresee a year like 2008," says Agarwal. Shortly