According to HFR, the alternative investments data consultancy firm, there were 129 new hedge fund launches between April and June’s end this year.
That number is the highest quarterly tally for new funds since Q2 2019.
HFR’s president, Ken Heinz, explained that hedge funds are also posting high returns, even in the face of the twin uncertainties of the COVID-19 pandemic and the upcoming presidential elections.
“Most institutions are positioning for elevated levels of realized volatility to continue for the foreseeable future and are interested in opportunistic exposures that both preserve capital and realize opportunities created by the uncertain macroeconomic and geopolitical environment,” Heinz said.
Nevertheless, the good news is still just a blip in the long-term trend which is continuing: the total new hedge funds for the entire last four quarters are still at an all-time low with a total of 404 funds launching during the past 12 months.