Opalesque has revealed the number of new Hedge Fund launches declined and Fund liquidations increased in the third quarter. The number of single-manager Hedge Funds has increased to record levels whilst Fund of Hedge Fund numbers have fallen back to 2005 levels.
The squeeze on management and performance fees continued with the average management fee falling to 1.56% and the average performance fee falling to 18.62%. Ongoing pressures relating to increasing regulatory burdens, market uncertainty and competition have made conditions difficult for some managers; particularly given 51.85% of funds covered by Fund Monitors have been below their high water marks for 6 months or more as of October 31.
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