Hedge fund liquidations in 2016 are on track to hit the highest number since the financial crisis, while launches during the third quarter slumped to lows not seen since the first quarter of 2009, according to data from Hedge Fund Research (HFR).
Despite the overall number of hedge funds tumbling to 9,925 by the end of September – the first time it has fallen below 10,000 since 2014 – the total amount of funds under management has jumped to a record high of $2.979 trillion dollars as positive performance has more than compensated for net investor outflows in recent months.
November saw continued positive performance for funds according to data provider Preqin, with its All-Strategies benchmark gaining 1.00 percent for the month of November, pushing year-to-date returns up to 6.74 percent.
On a regional basis, North American funds performed the most strongly again in November, returning 2.89 percent to bring returns for the first 11 months of the year to 9.09 percent. In terms of strategies,event-driven not only had the strongest November, delivering 2.34 percent, but is also in the lead year-to-date with a return of 10.74 percent to now.
Pressure on fees has continued throughout the year with HFR reporting a 1 basis point slip in average management fees to 1.49 percent while the average performance fee has relented 10 basis points to 17.5 percent.