Hedge fund liquidations fell more than 50% in the first quarter, from the record set in the fourth quarter, according to Hedge Fund Research in Chicago.
During the first quarter, 376 funds closed, compared to 778 in the previous quarter, Hedge Fund Research said Tuesday. This was an attrition rate of 4.05%, the second-highest quarterly rate since the 7.77% in the fourth quarter.
Since the middle of last year, the hedge fund industry has lost nearly 1,200 funds and now has about 9,050.
Liquidations of funds of hedge funds rose significantly in the first quarter, accounting for more than half of all closings; nearly 200 funds of funds shut down, a quarterly record.
At an annual rate, fund of fund attrition exceeded 8%, nearly double the previous record set in the fourth quarter.
Fund launchings accelerated in the first quarter, with about 150 funds entering the market, the highest rate of introductions since the second quarter of 2008.
