Canadian Hedge Watch – November 2012
A recent CNBC segment “Why More bankers May Be Starting Hedge Funds” Global HFA a hedge fund consulting company has a few points to add. The growth of new start up hedge funds is growing faster than ever in its history dating back over 60 years. The amount of new inquiries to start hedge funds, private equity funds and real estate funds are hitting record levels due to a variety of reasons.
Andrew Schneider the President and CEO of Global HFA has helped over 500 funds launch and has several comments to explain why there are a large growth of start up funds. “There are a few reasons why hedge fund managers are leaving there current firms and starting new funds” states industry expert Andrew Schneider.
With the Dodd-Frank bill being passed the Volcker rule changes the way banks can run prop divisions. These divisions have traditionally been one of the most profitable components of the banks. Most banks are either spinning them off or shutting them down. Due to this most of the new start ups are more experienced traders with larger AUM when they launch. This is different from the last few years where most start up funds had small amounts of AUM.
The full article is available here: Canadian Hedge Watch