At a glance
- Industry capital reached an estimated $5.63 trillion through 2Q26, a record, HFR said.
- For allocators screening new managers, the 100 estimated second-quarter launches are fewer than two-thirds of the prior quarter's 166.
- The funds that did launch charged an average management fee of 1.26% and an incentive fee of 17.5%.
Hedge fund launches fell to an estimated 100 in the second quarter from 166 in the first, while liquidations dropped to about 70 from 129, according to HFR's Market Microstructure Report.
Industry capital reached an estimated $5.63 trillion through 2Q26, a record, HFR said. Institutional Asset Manager covered the report on Oct. 12. The 129 first-quarter liquidations were the highest quarterly total since 2Q24, and the 561 launches in 2025 were the highest annual figure since 2021.
For allocators screening new managers, the 100 estimated second-quarter launches are fewer than two-thirds of the prior quarter's 166.
The funds that did launch charged an average management fee of 1.26% and an incentive fee of 17.5%. Industry-wide averages were 1.32% and 15.74%, leaving new funds priced below the average base fee and above the average carry.
By strategy, Equity Hedge led both counts: an estimated 40 launches and 31 closures in 2Q26. Macro added 27 funds and closed 20. HFR president Kenneth J Heinz said the twin declines point to "a more challenging capital raising environment for new and emerging managers," with investors favoring larger, established managers, particularly in Macro.
Redemption notices are also running below average: SS&C GlobeOp's indicator fell to 1.62% in October, under its 2.06% five-year average, ALTS reported on Oct. 23.
Reported by the Hedge Funds & Liquid Alts desk from Institutional Asset Manager, HFR Market Microstructure Report and Alternatives archive, SS&C GlobeOp redemption indicator. Published . Corrections