The Top Ten Hedge Fund Launches Of 2009

Hedgco News - Assets raised by hedge fund startups in 2009 fell 36% from the previous year, marking the second year in a row that new fund assets declined significantly, according to the biannual AR New Funds Survey, published in the February issue of AR.

The largest new fund launches in the U.S. in 2009 amassed $14.89 billion, in contrast to $23.17 billion for the largest new funds in 2008 and $31.5 billion in 2007.

Although 53 funds with at least $50 million in assets launched by year-end, compared with 55 in 2008, the average size of the funds fell significantly. The number of new funds managing more than $1 billion also decreased. Only two new funds were able to end 2009 with $1 billion or more in assets, compared with 2008, which had five funds managing that amount.

Soros Fund Management alums Joshua Berkowitz and Marcel Kasumovich boasted the biggest new fund of the year with their Woodbine Capital Fund, a global macro strategy that launched at the end of 2008 but only started taking outside capital in 2009. The fund ended the year with $2.5 billion and is already nearing $3 billion thanks to additional in-flows at the start of 2010.

Arvind Raghunathan’s Roc Capital Partners Fund was the second-largest launch of the year—and the biggest that actually opened its doors in 2009. The firm’s global equity fund launched in August and ended the year managing $1 billion.

“There is still a reluctance of investors to part with their money. Moreover, the big issues of 2008 – transparency and liquidity – continue to be major challenges for new funds,” said Michelle Celarier, editor of AR. “The barriers to entry are also the highest they have ever been and the environment has been particularly challenging for capital raising.”

New strategies that are getting attention from investors include specialist and niche equity strategies such as those focused on health care, clean technology, climate change and alternative energy. Merger arbitrage is also attracting interest as the number of mergers and acquisitions increase.

TOP TEN HEDGE FUND LAUNCHES 2009

FIRM NAME	FUND NAME	STRATEGY	ASSETS 12/31/09 (in $ millions)	MANAGERS	MONTH LAUNCHED
Woodbine Capital Advisors	Woodbine Capital Fund	Global macro	2,500	Joshua Berkowitz, Marcel Kasumovich	January
Roc Capital Management	Roc Capital Partners Fund	Global equity, market neutral	1,000	Arvind Raghunathan	August
Pia Capital Management	Pia Macro Fund	Liquid global macro	949	Christopher Pia	June
LDH Energy	LDH Energy Opportunities Fund	Commodities	750*	William Reed	September
Realm Partners LLC	Realm Partners Fund LP	Multi-strategy/ event driven	650	Robert Millard	July
Harbinger Capital Partners	Credit Distressed Blue Line Fund	Distressed/credit	620	Philip Falcone	April
Saba Capital Management	Saba Capital Master	Credit	560	Boaz Weinstein	August
Plural Investments	Plural Partners Master Fund	L/s equity	550	Matt Grossman	January
Brevan Howard Asset Management	Brevan Howard Credit Catalyst	Credit	517	David Warren	June
Manatuck Hill Partners	Manatuck Hill Scout Fund	L/s equity	400	Mark Broach	July

* Estimated

HedgeFund Intelligence is the world’s leading information source on hedge funds and those investing in hedge funds, including funds of funds. It publishes performance data on more than 10,000 hedge funds and funds of funds around the globe, and its titles cover the U.S., European and Asian markets.