New Hedge Fund Launches 2009

Hedge Fund Launches in 2009 is Good News for Next Year

Hedge fund startups are gaining momentum as more new managers enter the market. Hedge fund launches has significantly increased since the end of 2008 coinciding with a recovery in fund performance in 2009. In the third quarter, 173 new funds were launched, 54 more than the previous quarter. The only catch is that many new hedge funds are settling for more investor-friendly terms and lower fees with limited partners and still raising less capital, but that is somewhat predictable after the financial crisis.

Still, the pace of new openings is way down from a few years ago. And "the size of the opening capital base is quite a bit smaller than it has been historically," said John Willian, global co-head of prime brokerage at Goldman Sachs Group Inc

Among this year's largest launches is London-based Tony Chedraoui's Tyrus Capital LLP. His fund launched in mid-October with more than $800 million in assets, which have since grown to about $1.65 billion, according to a person familiar with the matter.

Arvind Raghunathan's Roc Capital Management LP in New York is managing about $1 billion since launching this summer ((2009)), which at least initially included about $500 million from his former employer Deutsche Bank AG, people familiar with the matter said. And, in one of Asia's largest launches, Hong Kong-based Nick Taylor's Senrigan Capital Management Ltd. launched its fund in early November with about $220 million, including about $150 million from Blackstone Group LP, according to people familiar with the situation. Source

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