Hedge Fund Death/Birth Cycle Speeds Up

The churn going on with your favorite least-liquid, highest-cost concentrated, leveraged beta funds, sorry I mean “hedge funds,” is heading into overdrive…

From Reuters:

Hedge fund closures rose to a two-year high in the first quarter of 2012, data released Friday showed.

According to tracking firm Hedge Fund Research of Chicago, 232 funds liquidated in the first three months of the year. That marked the highest quarterly liquidation of hedge funds since 240 shuttered in first quarter 2010.

However, those closures were offset by an increase in new hedge funds, as total hedge fund industry assets hit a record $2.13 trillion.

There were 304 new funds launched in the first quarter, the highest quarterly total since the final three months of 2007.

I’m assuming the 304 new funds are simply the same managers from the 232 liquidated funds operating under the name of a new Greek god or geological formation – and more importantly with a clean slate rather than the old high water mark for fees.

Fucking circus, only difference is the clowns here shop at Lord & Taylor.

Source:

Hedge fund closures hit 2-year high in 1st quarter (Reuters)