Just 12% of new hedge funds launched in the first three months of the year are managed by European managers, with US-based managers accounting for the lion’s share 81% of new vehicles.
The AIFMD is due to come into force on the 22 July, but at the end of last year a significant proportion of fund managers were still underprepared for its passing.
Speaking strategy
Long/short funds continued their renaissance during the quarter, and 58% of all new fund launched were of this strategy, an increase of eight percentage points from Q4 2012 and significantly higher than the 36% market share of all new fund launches in the same period last year.
Equity-driven strategies in general accounted for 83% of all new funds launched, reflecting demand on the back of rallying equities markets.
Amy Bensted, head of hedge funds products at Preqin, said: “Liquid strategies trading on equities, notably long/short equity, are increasingly being sought by institutional investors looking to take advantage of the current market rally. Investors targeting this strategy will have a wide choice of funds to choose from, with offerings from both established and emerging managers.”
Taking a chance
Over one quarter, 28%, of all new funds launched in the first quarter of the year are managed by first-time fund managers, while a further 16% of managers launching new vehicles have managed just one other fund.
Find out more about hedge fund performance during the first quarter of the year here.
