Hedge fund launches and liquidations lowest for half a decade

Magnifying graphLaunches and liquidations of hedge funds are both on course to be the lowest for about five years.

With a total of 516 funds launched in the first six months of 2015, the number of new launches is on pace for its lowest level since 2010.

The year-to-date total of 417 liquidations puts this year on pace for the lowest annual number of liquidations since 2011.

Hedge fund launches and liquidations declined through the mid-year point as financial market volatility increased, says HFR, a hedge fund data firm, which produces the figures in its HFR Market Microstructure Report.

For the second quarter (Q2), hedge fund launches totaled 252, a narrow decline from 264 in the prior quarter.

But hedge fund liquidations also fell in Q2, dropping to an estimated 200 fund closures, a decline from the 217 liquidations in the previous quarter, though a slight increase from Q2 last year.

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