By: Economic & Finance Report
2019 was not the year of the hedge fund. Many hedge funds in 2019 were strapped for cash and liquidity was not as readily available, as in previous years.
According to Bloomberg news wire, hedge funds will be reporting more losses and closures for the 5th year in a row. More then 4,000 hedgefunds have liquidated in the past five years (HedgeFund Research Inc).
The reasons have varied on why hedge funds have been closing in recent years, such as investors revolting, or wanting their money earlier from the funds, to simply hedgefund officers getting tired on running their funds and family owned offices.
The profits have not been there as well. There are various reasons of funds closing at rapid paces, but take note this is a trend that may continue until the profits are there.
Credit: Bloomberg.com, Hedgefund Research Inc