Goldman hedge fund launches overshadow rivals
Goldman Sachs Asset Management's two hedge fund launches in the first half of the year accounted for just under half of the $19.5bn (€12.4bn) in assets overseen by newly launched funds, reflecting the dominance of the large asset managers in the hedge fund industry.
The 35 hedge fund launches in the Americas in the first half of 2008 represented less than half of last year's numbers, but the volume of assets was greater than the $14bn under management by 72 new funds last year, according to industry publication Absolute Return.
Goldman Sachs’s asset management arm’s two fund launches—Goldman Sachs Investment Partners, based on an equity long/short strategy, and Goldman Mortgage Credit Opportunities, focused on mortgage-backed securities, accounted for $8.1bn.
The top five funds held 70% of the total assets.
Greenwich, Conn.-based Conatus Capital Management’s equity strategy Capital Partners fund was the second largest launch in the first half of the year with $2.3bn. Lone Pine Capital launched a $1.8bn emerging markets hedge fund, Lone Dragon Pine was third.
The survey included hedge funds with at least $25m in assets under management.
Hedge fund launches fell to their lowest level in eight years in the first quarter of the year, according to data provider Hedge Fund Research.
Institutional investors, particularly pension funds, represent the largest new asset flows into the hedge fund industry as they increase their asset allocations to alternatives. These investors have favoured established hedge fund managers with a long track records.
Challenging market conditions have made the environment for startups less welcoming, spurring the drive for seed investors.
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