There were 240 hedge funds launched in the third quarter of this year and 200 liquidated, implying a modest net gain in the number of funds available.
Although the number of liquidations is less than in the corresponding quarter of 2013, the number of combined liquidations in the twelve months ending in September was higher than all yearly totals since 2009, says Hedge Fund Research, a US-based data provider.
The third quarter was volatile in terms of performance, and the combined funds tracked by the firm posted only a narrow gain to $2.82 trillion (€2.3 trillion).
“Recent performance gains, as well as increased investor risk tolerance, have been favorable toward emerging, small and mid-sized hedge funds, and are likely to attract investor capital to these innovative, nimble strategies into early 2015,” says Kenneth J. Heinz, president of Hedge Fund Research.
Hedge fund fees have declined during the past year, but changed little during the third quarter, says the firm. The average management fee is 1.52%, according to the data, and the average incentive fee is 18%. The average management fee for funds launched in 2014 is slightly higher at 1.55%.
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