New York (HedgeCo.Net) The first quarter of 2015 brought a mix of new hedge funds being launched along with a number of funds closing up shop, but when the numbers were all tallied, the record for number of funds being offered globally hit a new all-time high.

According to the latest data from industry research firm Hedge Fund Research, the number of funds grew to 10,149. There were 264 new funds launched and 217 that shut their doors for a net gain of 47 new funds. As far as the number of closures, that is the highest number since the first quarter of last year.

What this shows is that despite the negative publicity from the media regarding the performance of the industry as a whole not beating the overall market, investors still see the value in hedge funds. Despite the negative attacks by politicians regarding the taxes paid by hedge fund managers and the amount the managers make, investors still see value in hedge fund strategies.

While we at HedgeCoVest have always seen the value in hedge fund strategies, it is nice to see that investors agree and have driven the growth in the industry. That being said, we believe our platform takes the strategies that investors want and offers them in a better format—lower fees, greater transparency, greater liquidity and more availability.

As long as investors see the value, the alternative investment industry will continue to grow. And when the next bearish phase hits the market, we will get the opportunity to point out to the mainstream media how the concept of a hedge fund isn’t to beat the indices when the market is soaring higher, but rather to provide consistent returns and protect against big losses in a bear market.

Rick Pendergraft
Research Analyst
HedgeCoVest