Hedge fund liquidations in 2016 increased to 1,057, higher than the 1,023 liquidations in 2009 but lower than the record 1,471 liquidations in 2008, according to data from Hedge Fund Research (HFR).
The number of launches in 2016 slowed down, with the fourth quarter seeing 153 launches, the lowest quarterly total since the first quarter of 2009. However, total hedge fund industry capital increased to $3.02 trillion, as of end-2016, surpassing the year-ago level of $2.9 trillion.
Kenneth J. Heinz, president, HFR, said that this underscored the “shifting investor risk tolerance and steadily increasing concentration of investor capital in mid-to-large hedge fund firms”.
