Hedge Fund Liquidations Highest Level Since 2009 - HFR Data

Mark Shapland

12 December 2014

Hedge fund liquidations increased over the third quarter with 200 hedge funds being shut down.

This, however, was less than the 222 that closed in the same period last year, according to latest data from - a tracker for the industry. In the trailing 12 months, 957 funds liquidated - topping liquidations in each of the prior four years and representing the highest total since 1023 funds closed in 2009.

At the same time the number of hedge fund launches for the third quarter was down as the industry limps to the end of what has been difficult year for returns.

Only 240 opened in the third quarter this year, the lowest since the same period last year, according to Hedge Fund Research.

In the year-to-date, 814 new funds have launched while new launches in the trailing four quarters totalled 1058 - in line with the full-year total of 1060 for 2013 - which was the lowest annual launch total since 2010.

All of this has also been reflected in average fees which were unchanged over the quarter, having declined over the past year. The average management fee industry was 1.52 per cent, representing a narrow year-on-year decline of minus 1 bps from the third quarter last year.

Earlier this week data from BarclayHedge and TrimTabs Investment Research revealed that the industry recorded a strong inflow for October, making up for a large outflow in September. The industry took in $250 million in October, recovering from outflows of $6.8 billion in September.