Fund Growth Slows Again

New York (Hedgeco.Net) – For the third consecutive year, the number of new hedge funds launched dipped. In the latest HFR Market Microstructure Industry Report, research firm HFR reported that there were 1,040 new hedge funds launched in 2014 and that is down from 1,060 launches in 2013. Both of these figures fall well short of the highest number of launches which was 2,073 in 2005. The worst year for new launches came during the bear market in 2008 when only 659 launches took place.

On a brighter note, the number of hedge fund liquidations declined in 2014 from 904 liquidations in 2013 to 864 last year.

The report also revealed that fees for the industry fell overall. The average management fee declined to 1.51% while the average incentive fee fell to 17.8%. These averages were 1.54% and 18.2% in 2013.

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