New hedge fund products launches declined by 60% between
2007 and 2009.
New product launches, which include both
additional share classes of existing funds as well as newly
launched emerging hedge fund managers, declined by roughly
60%, according to a tally I conducted last week on funds
reporting to the HedgeFund.net database.
The reduction in product launches may even be higher
because the 857 funds with a track record beginning in 2007
includes only funds that have continued to report their
monthly returns to our database through November 2009.
One particularly interesting trend, however, is the
proportion of long-short, funds-of-funds, and CTA/managed
futures has tended to remain roughly the same each year with
a breakdown of roughly 22%, 16-20%, and 6-8%, respectively.
The table below organizes fund products by the year in
which their track record began, meaning a fund with a first
month of trading of July 2007 is in the Class of 2007.
|
Class of 2007
|
|
Class of 2008
|
|
Class of 2009
|
|
Long/Short Equity |
190
|
|
Long/Short Equity |
146
|
|
Long/Short Equity |
75
|
|
Fund of Funds - Multi-Strategy |
175
|
|
Fund of Funds - Multi-Strategy |
106
|
|
Fund of Funds - Multi-Strategy |
73
|
|
Multi-Strategy |
65
|
|
CTA/Managed Futures |
56
|
|
Fund of Funds - Single Strategy |
28
|
|
CTA/Managed Futures |
61
|
|
Multi-Strategy |
45
|
|
CTA/Managed Futures |
26
|
|
Emerging Markets |
45
|
|
Fund of Funds - Single Strategy |
44
|
|
Emerging Markets |
23
|
|
Macro |
44
|
|
Macro |
30
|
|
Macro |
19
|
|
Fund of Funds - Single Strategy |
40
|
|
Emerging Markets |
29
|
|
Multi-Strategy |
14
|
|
Long Only |
25
|
|
Fixed Income (non-arbitrage) |
27
|
|
Distressed |
13
|
|
Market Neutral Equity |
23
|
|
Market Neutral Equity |
23
|
|
Fixed Income (non-arbitrage) |
13
|
|
Event Driven |
22
|
|
Event Driven |
17
|
|
Market Neutral Equity |
11
|
|
Options Strategies |
20
|
|
Distressed |
14
|
|
Mortgages |
11
|
|
Fixed Income (non-arbitrage) |
19
|
|
Mortgages |
14
|
|
Fixed Income Arbitrage |
10
|
|
Asset Based Lending |
16
|
|
Options Strategies |
13
|
|
Long Only |
5
|
|
Fund of Funds - Market Neutral |
13
|
|
Asset Based Lending |
10
|
|
Value |
5
|
|
Energy Sector |
11
|
|
Fixed Income Arbitrage |
9
|
|
Asset Based Lending |
4
|
|
Convertible Arbitrage |
9
|
|
Value |
8
|
|
Event Driven |
4
|
|
Healthcare Sector |
9
|
|
Convertible Arbitrage |
5
|
|
Convertible Arbitrage |
3
|
|
Regulation D |
9
|
|
Energy Sector |
4
|
|
Options Strategies |
3
|
|
Value |
9
|
|
Finance Sector |
4
|
|
Special Situations |
3
|
|
Distressed |
8
|
|
Long Only |
4
|
|
Energy Sector |
2
|
|
Short Bias |
7
|
|
Special Situations |
4
|
|
Healthcare Sector |
1
|
|
Special Situations |
7
|
|
Statistical Arbitrage |
4
|
|
Regulation D |
1
|
|
Fixed Income Arbitrage |
5
|
|
Other Arbitrage |
3
|
|
Small/Micro Cap |
1
|
|
Small/Micro Cap |
5
|
|
Regulation D |
3
|
|
Statistical Arbitrage |
1
|
|
Merger/Risk Arbitrage |
4
|
|
Small/Micro Cap |
3
|
|
Grand Total |
349
|
|
Capital Structure Arbitrage |
3
|
|
Healthcare Sector |
2
|
|
|
|
|
Mortgages |
3
|
|
Short Bias |
2
|
|
|
|
|
Other Arbitrage |
3
|
|
Short-term Trading |
2
|
|
|
|
|
Statistical Arbitrage |
3
|
|
Technology Sector |
2
|
|
|
|
|
Technology Sector |
2
|
|
Fund of Funds - Market Neutral |
1
|
|
|
|
|
Finance Sector |
1
|
|
Grand Total |
634
|
|
|
|
|
Market Timer |
1
|
|
|
|
|
|
|
|
Grand Total |
857
|
|
|
|
|
|
|
