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As Hedge fund Closures Surge A Bright Light Ahead

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Mark Melin
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With hedge fund assets under management hitting an all-time high – topping $3 trillion – another industry milestone appears contradictory. Hedge funds closing their doors in 2016 was at its highest level since 2009, an HFR Market Microstructure Report noted. The high hedge fund failure rate came amid a drop in new fund launches, lowered fee structures but generally positive year to date performance. But all isn't gloomy, according to HFR, as the process of economic normalization could result in a positive market environment for hedge fund performance across the board.

 

Hedge fund performance: assets under management hit record high along with fund closures

The year 2016 witnessed hedge fund liquidations hit 1,057, leaving the total number of funds at 9,803....

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.