New York (HedgeCo.net) – Seward & Kissel, the law firm that helped create the first hedge fund over 60 years ago, A.W. Jones & Co., announced its first study of New Hedge Funds in the U.S. The Seward & Kissel 2011 New Hedge Fund Study takes a look at newly launched hedge funds sponsored by U.S. based managers entering the market for the first time in 2011. Key findings include:
Half of the responding new U.S. hedge funds created in 2011 have an equity or equity-related investment strategy. About 1/3 of these equity funds were focused on U.S. equities while the rest had a global focus.
Majority of new U.S. hedge funds created in 2011 are charging a 2% management fee.
75% of new U.S. hedge funds in the study permitted quarterly redemptions with the balance allowing for monthly exits.
60% of funds in the study had a soft lock-up, usually a year, while 30% had no lock-up and the rest had a hard lock-up.
Vast majority of funds in the study had no gates with about ¼ having an investor level gate.
Stated minimum initial investment of a majority of the funds in the study was set at $1,000,000, with some outliner funds having a stated minimum of $250,000 on the low end and $5,000,000 on the high end.
45% of responding funds obtained some form of founders, seed or strategic capital, while the rest had no strategic capital.
You can view the Seward & Kissel 2011 New Hedge Fund Study at 2011 New Hedge Fund Study.