Hedge Fund Industry Shrinking Says Barclays

August 10, 2016 James Heinsman Hedge Fund News

A report published by Barclays Bank shows that the number of hedge funds is shrinking for the first time since the 2008 economic crisis.

Poor earnings are forcing the funds to close, and bad returns are discouraging managers from taking the risk of opening new hedge funds.

The Barclays report predicted that by the end of this year there will be a net loss of 340 funds around the world, a 4 percent decrease from last year. In 2009 the industry also saw a 4 percent shrinkage on the heels of an 11 percent contraction during the height of the financial crisis in 2008.

Hedge Fund Research, a hedge fund research company, reported that today there are 10,007 hedge funds globally, as of July.

“Based on recent HF (hedge fund) performance and the increased challenges to launching an HF (hedge fund), we estimate that there would be a net decrease in the number of funds by YE (year end) 2016,” the Barclays report said.

Barclays Bank, Hedge Fund Research,

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