Launches of new hedge funds in the first quarter fell to the lowest level since the global financial crisis, amid the coronavirus-induced lockdowns and market volatility.
New launches totaled an estimated 84 in the three months ended March 31, said Hedge Fund Research in an update. That is the lowest quarterly estimate since the fourth quarter of 2008, when 56 hedge funds were launched.
For the fourth quarter of 2019, launches totaled an estimated 89, bringing full-year 2019 launches to 480, the data showed. For the first quarter of 2019, launches totaled 136.
Liquidations of hedge funds in the first quarter increased to an estimated 304, the highest level since the fourth quarter of 2015, when liquidations totaled 305. For the fourth quarter of 2019, liquidations totaled 198, bringing 2019 full-year liquidations to an estimated total of 738.
HFR noted that the first-quarter launch and liquidation estimates represent the seventh consecutive quarter in which liquidations outpaced launches.