Reflation Indicators: Hedge Fund Edition

Here’s another bullet point in our ongoing tally of reflation indicators. It’s the return of risk in the form of start-up hedge funds (John Meriwether included).

From the FT:

Hedge fund launches are growing in size and number after months of subdued activity in the wake of the collapse of Lehman Brothers last year.

The revival of fund start-ups is one of the clearest signs yet that the $1,400bn global hedge fund industry is starting to return to better times.

London-based Tyrus Capital on Monday became the largest fund to launch so far this year. According to people close to the company, investors placed about $800m with it before the cut-off for initial subscriptions closed. The fund is expected to raise a further $300m before the end of the year.

Comments

[Old Trader:]

Mr. Harrison,

Like many, if not most of the "green shoots", this one is just barely out of the ground. I read the article, as well, and you neglected to mention that the number of new funds, while up, is still WAY off the number of launches of a couple of years ago. Additionally, the AUM at start-up are off by a bunch ($50-$150 M being the norm, as opposed to the $500m+ that was the norm, with a few funds starting out of the gate with $1B under management).

Nov 03 06:52 PM