Hedge fund launches increased to 175 in the fourth quarter of 2020 after eight quarters of contraction, according to data from a Hedge Fund Research report released Thursday.
By comparison, 151 new hedge funds opened in third quarter of 2020.
The fourth-quarter hedge fund launch rate was the highest since the fourth quarter of 2017 when 190 hedge funds were started, HFR data showed.
A total of 151 hedge funds were liquidated in fourth quarter, higher than the 137 that closed in third quarter of 2020, but lower than the most recent high-closure rate of 178 in the second quarter of 2020.