×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: hedge funds | market turmoil | volatility | losses

Hedge Fund Launches Plunge, Liquidations Rise

Hedge Fund Launches Plunge, Liquidations Rise
New York Stock Exchange (Getty Images)

Friday, 30 September 2022 03:25 PM EDT

New hedge fund launches dove in the second quarter to the lowest level since the 2008 global financial crisis, while fund liquidations spiked, industry data provider HFR said Friday.

There were 80 hedge fund launches between April and June, down 57% from the first quarter and the lowest number of new funds since the fourth quarter of 2008, when 56 funds were launched, according to HFR

Another 156 hedge funds closed their doors between April and June, 24% more liquidations than the previous quarter. Overall, the number of hedge funds fell to 9,237 in the second quarter from 9,313.

"Risk-off sentiment drove investor risk aversion, with investors maintaining exposures to established funds through the current volatile market paradigm of unprecedented geopolitical and macroeconomic uncertainty," said Kenneth J. Heinz, president of HFR.

The data underscores the challenges faced by the hedge fund industry in 2022 amid market turmoil, with $7.7 billion in net outflows in the first half of the year.

Still, hedge funds on average have outperformed the S&P 500. The HFRI fund-weighted composite index is down 4% this year through August, while the S&P plunged 17% in the same period.

© 2022 Thomson/Reuters. All rights reserved.


StreetTalk
New hedge fund launches dove in the second quarter to the lowest level since the 2008 global financial crisis, while fund liquidations spiked, industry data provider HFR said Friday.
hedge funds, market turmoil, volatility, losses
191
2022-25-30
Friday, 30 September 2022 03:25 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved