Tuesday, January 12, 2010
Creative Destruction in the Hedge Fund Industry
The topical study from the January 2010 issue of The Hedge Fund Flow Report. Gain insight into industry trends and hedge fund asset flows before you make your next important decision.
Three main factors impact the size of the hedge fund industry - its returns, the flows into existing funds and the net creation (or liquidation) of hedge funds. Since we comment regularly on hedge fund flows and returns, we focused on hedge fund creations and liquidations.
We found that:
Accredited investors can read the entire article for free.
From the January 2010 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Three main factors impact the size of the hedge fund industry - its returns, the flows into existing funds and the net creation (or liquidation) of hedge funds. Since we comment regularly on hedge fund flows and returns, we focused on hedge fund creations and liquidations.
We found that:
- The hedge fund industry lives in a very Darwinian world, i.e. 6.5% of hedge funds (in terms of assets) disappear every year while 6.9% are created. At this pace, it takes only 15 years to fully replace the hedge fund industry.
- The pace of hedge fund creation has slowed as the industry has matured. Fund launches represented 4.1% of hedge fund assets in 2008 and 2009, against 10.5% in 2002 and 2003.
- In terms of assets, liquidations have exceeded new fund launches in each of the past four years.
- 2009 was the worst year on record for fund launches. Fewer funds were launched and they started with far fewer assets (an average of $452 million …
Accredited investors can read the entire article for free.
From the January 2010 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
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