New hedge fund launches have plunged to the lowest level since Q4 2008 as according to the latest HFR Market Microstructure Report.

The estimated number of new hedge fund launches fell to only 80 in the second quarter of the year, a significant decline from the estimated 185 launches in Q1, representing the lowest launch rate since only 56 new funds launched in Q4 2008. In the trailing 12 months ending Q2 2022, an estimated 510 total new hedge funds have launched. 

The number of hedge fund liquidations increased from the prior quarter, as an estimated 156 funds closed their doors in Q2 22, up from 126 fund liquidations in the first quarter. In the trailing 12 months ending Q2 2022, an estimated 501 funds have liquidated, resulting in a minimal increase in total number of active hedge funds over the trailing 12 months.