Reuters- More new U.S. hedge funds were launched during the first half of 2007 than during the same time a year ago, suggesting demand for these loosely regulated portfolios is high even as returnslook less robust.
Data compiled by Absolute Return magazine shows that 72 new funds began trading between January and June 2007, marking a roughly 41 percent increase from the 51 funds that launched during the first six months of 2006.
Investors put $14 billion into the funds started this year after adding $11.7 billion to the funds launched a year ago, the magazine found.
“Clearly investors — both individuals and institutions — are becoming more sophisticated and are saying they want to invest in hedge funds and so firms are meeting that demand,” said Matt Simon, analyst at the Tabb Group.
