LONDON, Might 9 (Reuters) – Hedge fund launches in 2023 are at their lowest degree globally since 2017, knowledge supplier Preqin mentioned, towards a backdrop of banking upheaval and bouts of market volatility.
To date this yr, 180 funds have began or plan to begin buying and selling, Preqin instructed Reuters on Tuesday.
Untried pattern managers particularly have discovered capital elevating powerful given market turbulence which has pressured many established macro and trend-following funds to chop positions from unhealthy portfolio bets.
Managed futures hedge funds utilizing computer-led methods to comply with market developments and companies buying and selling on macroeconomic alerts have had three and eight launches respectively this yr.
There have been 36 launches of fairness technique funds, making them the preferred technique, Preqin knowledge confirmed.
In the meantime, credit score has seen seven new funds launched and multi-strategy companies buying and selling many alternative sorts of methods collectively had six launches up to now in 2023, with one additional anticipated within the third quarter.
World mergers and acquisitions (M&A) exercise shrank to its lowest degree in additional than a decade within the first quarter, and solely six new occasion pushed hedge funds have began this yr.
“The sturdy public fairness efficiency this quarter was encouraging for a technique that correlates extremely with public markets. In the meantime, macro methods fell out of favor simply as shortly as that they had are available in,” Preqin mentioned in its Hedge Funds Q1 2023 report, which was launched earlier this month.
Reporting by Nell Mackenzie; Enhancing by Alexander Smith
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