tyb
<3
Hedge Fund Closures Exceed Launches For The Third Straight Quarter
It was the third straight quarter that more shut than opened. Industry under pressure due to high fees, lackluster returns.
Global hedge fund liquidations exceeded launches for the third consecutive quarter as managers faced a tough capital-raising environment.
About 213 funds closed in the first three months of this year, compared with 136 that opened, according to a Hedge Fund Research Inc. report Friday. Liquidations remained steady from the prior quarter, while launches rose about 23%.
Hedge fund startups are under pressure amid lackluster performance and investor discontent over high fees.
Investors pulled $17.8 billion from hedge funds in the first three months of this year, the fourth consecutive quarterly outflow.
The industry has seen a string of firms shut funds or return investor capital including Highbridge Capital Management and Duane Park Capital Management
The average management fee for funds launched in the first quarter declined 10 basis points to 1.19%, while the average incentive fee was 18.79% – an increase from 17.9% for funds started in 2018.
Hedge funds, on average, rose 3% in the first quarter on an asset-weighted basis, according to HFR, lagging the S&P 500 Index, which gained 13.7%, with dividends reinvested, in that period.
The average management fee for funds that launched in the first quarter was down 10 bps to 1.19%, while the average incentive fee increased to 18.79% from 17.9% in 2018.
Hedge funds on average were up 3% in the first quarter on an asset weighted basis, which lagged the S&P index by a stunning 10.7% with dividends reinvested over the same period.
In May we had noted that the broader S&P 500 had trounced the average hedge fund, returning 18% YTD, and charging precisely nothing for this out-performance.
translation-make your own decisions and do your own research, you do not need to pay ANYONE to do this-the days of 2% mgmt fee and 20% of the profit are about to end, commonly referred to as "2 and 20" in wall street speak.
Also in late May, we documented shocking losses from Horseman Global. The fund's losses more than doubled in April, when the fund was down a was a staggering 12%, which brought its total loss YTD to more than 25%.
In early June, we wrote about Neil Woodford, the UK's equivalent of David Tepper, blocking redemptions from his £3.7bn equity income fund after serial underperformance led to an investor exodus, "inflicting a serious blow to the reputation of the UK’s highest-profile fund manager."
https://www.bloomberg.com/news/articles/2019-06-28/hedge-funds-ranks-shrink-again-as-closings-outnumber-launches
https://www.zerohedge.com/news/2019-06-30/hedge-fund-closures-exceed-launches-third-straight-quarter
>Trump is secretly telling everyone the world is flat.
just give it up.
>Home Depot Co-Founder Bernie Marcus Vows to Donate Most of His Billions to Charity, and Help Re-Elect Trump
notable
Abe did not broach Khashoggi killing in talks with Saudi crown prince
OSAKA (Kyodo) – Japanese Prime Minister Shinzo Abe did not bring up the killing of journalist Jamal Khashoggi in a meeting Sunday with Saudi Crown Prince Mohammed bin Salman, according to Japan's Foreign Ministry.
The crown prince has been dogged by questions about Khashoggi's death at the Saudi consulate in Istanbul in October. A U.N. report called it a "premeditated extrajudicial execution" and said there is "credible evidence" suggesting the crown prince's involvement.
In a two-hour meeting in Osaka following a Group of 20 summit, the two leaders exchanged views on the situation in the Middle East amid heightened tensions surrounding Iran, a ministry official said.
Saudi Arabia, a U.S. ally and Iran's main rival in the region, has accused Tehran of being responsible for attacks in mid-June on two oil tankers near the Strait of Hormuz.
While Japan is also a U.S. ally, it has traditionally maintained friendly ties with Iran and views it as an important source of oil.
The tanker attacks happened just as Abe was visiting Iran in an effort to mediate between Washington and Tehran.
In their meeting, Abe and the crown prince also welcomed the strengthening of economic ties between their countries.
Touching on Saudi Arabia's efforts to diversify from its reliance on oil, Abe pledged the "full support" of Japan's public and private sectors.
The crown prince said he was happy that a number of projects were seeing progress.
Under the Saudi-Japan Vision 2030 economic cooperation framework, the two countries are exploring setting up special economic zones to invite more investment by Japanese companies into the Middle Eastern country.
Abe, the chair of this year's G-20 summit, thanked the crown prince for his support and pledged to support Saudi Arabia's presidency next year.
https://mainichi.jp/english/articles/20190630/p2g/00m/0na/040000c
they also wanted a 'comprehensive GLOBAL' financial solution that was "fair"-fuck them.
chek'em trips