The number of new hedge fund launches is expected to reach a 24-year low by the end of 2024, according to hedge fund research firm Preqin. The firm noted that the difficult fundraising environment has significantly impacted the industry’s growth this year.
As of the third quarter of 2024, hedge fund managers had launched just 123 new funds, marking the lowest level since at least 2000, when 191 new funds were introduced. This year’s figure is a stark contrast to the peak of 697 hedge fund debuts in 2017, Preqin’s data shows.
Most of the new funds this year are focused on stock trading, according to the research firm.
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