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Hedge Funds

Hedge fund liquidations decline in second quarter

The pace of hedge fund liquidations fell to 222 in the quarter ended June 30, compared to 259 firms that closed in the first quarter of 2017, data from Hedge Fund Research showed.

The number of funds shuttered in the second quarter of 2016 totaled 239.

There were 180 hedge fund launches in the three months ended June 30, compared to 189 in the prior quarter and 170 in the second quarter of 2016.

If liquidations continue at the current pace, the total for calendar year 2017 would be 962 vs. a total of 1,057 in 2016, according to HFR's latest research report, released Monday.

Hedge fund launches in the first six months of 2017 numbered 369; should the pace continue, hedge fund launches in 2017 would total 738, up slightly from the 729 new funds started in 2016.

"Hedge fund liquidations declined as total industry assets capital eclipsed another record ($3.1 trillion) with new investor inflows," said Kenneth J. Heinz, HFR's president, in a news release accompanying the report.

"We expect a continuation of the favorable trend in new launches, as well as expansion of the alternative investor base interest to also encompass risk parity and risk premia strategies," Mr. Heinz added.