Fewer hedge funds opened their doors in the fourth quarter, according to HFR Hedge Fund Research.
Hedge fund launches slipped to 220 in the quarter, HFS said.
It was the second-lowest quarterly launch total in the last six quarters.
For 2010 as a whole there were 935 launches, marking the best year for new funds since 2007, when nearly 1,200 hedge funds launched.
Fund liquidations totaled 743 in 2010, the fewest since 2007 and nearly half the record calendar-year liquidation total of 1,471 set in 2008.
Just 158 funds liquidated in the fourth quarter, the lowest total since the fourth quarter of 2007 and about one-fifth the record total of 778 funds that liquidated in the fourth quarter of 2008.
Average hedge fund incentive fees continued to decline, to 18.95% industrywide, the lowest level since HFR Hedge Fund Research began tracking aggregate industry fee structure. Average management fees were unchanged at 1.58%.
