Hedge fund launches were down slightly in the quarter ended June 30 to an estimated 180 from 189 in the first quarter 2021, according to data released Thursday by HFR.
By comparison, 129 hedge funds debuted in second quarter 2020.
Hedge fund liquidations in the latest quarter totaled 149, down from 159 in the prior quarter and down from 178 in the second quarter 2020.
The hedge fund launch rate in the second quarter was the fourth consecutive quarter in which the number of newly opened hedge funds was higher than the number of liquidations, HFR researchers said in a report accompanying the data.
By comparison, prior to third quarter 2020, the hedge fund industry suffered eight consecutive quarters in which hedge fund liquidations were higher than new fund launches, HFR data showed.
"Strong launch and … performance trends are expected to accelerate through the (second half of 2021) with total industry capital on the verge of a historic milestone," said HFR researchers in the report, noting that "total hedge fund industry capital surged to a record $3.96 trillion" in the second quarter 2021.
