Hedge fund launches slow down

The general thinking out there is that the hedge fund industry continues to attract assets, which suggests that the boom times will continue, albeit with the normal volatility. But we've noted before that this is primarily a big fund firm phenomenon. The big guys keep carving out a larger share of the pie, making it harder for the little guys to scramble. The fact is that it's no longer a snap to set up a credible hedge fund. So we shouldn't be surprised by the news from Financial News Online that hedge fund start ups have slowed. In fact, the number of net start-ups--balancing liquidations against new firms--was just 77, according to Hedge Fund Research. That's the lowest level in eight years. I do not see this trend changing. The total entry costs are way too high now. Unless you have a big name to start, the best bet is to find a seeder that will take a flyer on you. Good luck.  

For more:
- here's the Financial News Online article