NEW YORK (HedgeWorld.com)–The number of new hedge funds hitting the market continues to slide since its peak during the fourth quarter of 2001, according to the latest Freeman & Co. research report.
The 20% drop in individual hedge fund launches and 50% drop in hedge fund of funds launches estimated by Freeman may not be accurate since the figures are based on what the firm has been able to track so far. Even so the hedge fund hype may be slowing down, according to the research firm.
Freeman believes that more firms are abandoning plans to launch funds in favor of partnering with an existing player. The rapid growth of the industry is what may be preventing new fund mangers from building a top-10 or -20 firm without benefiting from a partnership.