The rate of hedge fund closures slowed by 48% in the first quarter, but funds-of-funds liquidations set a record, according to new data from Hedge Fund Research.
The hedge fund industry tracker said 376 funds closed in the first quarter, vs. 778 in the fourth quarter. Liquidations of hedge funds of funds set a record in the first quarter, with 199 compared with 115 liquidations in the fourth quarter 2008.
HFR reported that 1,200 hedge funds closed between June 30, 2008, and March 31, dropping the total number of funds to 9,050.
Separately, HFR reported that hedge fund performance was positive in May, posting the best one-month returns since February 2000. The HFRI Fund Weighted Composite index was up 5.23% in May and up 9.43% year-to-date through May 31. The HFRI Fund of Funds Composite index also had a good month, returning 3.25% in May and 4.76% for the first five months of the year.
