In the second quarter, there were 180 hedge fund launches and 149 liquidations. The net 31 openings mark the fourth consecutive quarter in which launches exceeded closings. This comes after eight quarters of net closures.
Number of hedge funds remains on the upswing
Annually, liquidations have exceeded new hedge fund openings since 2015. Last year, there were 231 net subtractions, although momentum built in the back half of the year with 38 net additions. In the first half of this year, there have been 61 new funds after subtracting the liquidations.
There were 8,142 hedge funds at the end of the second quarter, excluding funds of funds. The annual number peaked in 2015 when there were 8,474 funds.
However, the number of funds of funds has continued to shrink since reaching the zenith in 2007 when there were 2,462. At the end of the second quarter, there were 1,086 funds of funds.