The estimated number of hedge funds launched in 2014 dropped by about 2%, according to data released Friday by HFR. It was the third straight year in which fund launches declined.
Funds launched in 2014 had an average management fee of 1.57%, 16 basis points higher than funds launched in 2013.
An estimated 1,040 hedge funds were launched in 2014, down from 1,060 the prior year and 1,108 two years earlier. The number of funds liquidated fell in 2014 (864 vs. 904 the prior year).
Between 1996 and 2014, the research firm estimates 17,670 hedge funds have been launched, while 9,911 were liquidated over the period.