Hedge fund failures slow as industry crisis eases
THE RATE at which hedge funds are collapsing slowed in the second quarter of 2009, in a further sign the hedge fund industry is over the worst.
The second quarter saw 292 funds enter liquidation, a 22 per cent fall on the 276 funds liquidated in the quarter before, according to data firm Hedge Fund Research (HFR).
But funds continue to close at an alarming rate, with 668 closing in the first half, HFRsaid.
Kenneth Heinz, president of HFR, said: “As hedge fund industry consolidation continues, multiple data points that suggest the impact of a tumultuous 2008 remain both widespread and sustained.”
He said performance in the sector has improved dramatically, with funds growing at their strongest levels since 1999. “But investors are making demands for greater transparency,” he added.