Hedge Fund Launches Set to Pick Up as Extreme Volatility Wanes

Hedge fund managers are increasingly optimistic about launching new funds as anxiety over U.S. economic policies that stoked extreme volatility in financial markets earlier this year starts to ease, say market observers.

Already, veterans of Goldman Sachs, Millennium Management, Marshall Wace and Centiva Capital have been revving up new hedge funds this year.

New managers have a lot more conviction about launching funds than they did in the first half of the year despite ongoing challenges with capital-raising for new hedge funds, said David Goldstein, director of fund services at STP Investment Services.

“People feel more confident in their strategy. They feel a little bit calmer about the markets,” Goldstein said. “Nobody’s going to wait four years to launch their fund, so if they had it in the works last year… they just know that it’s time to move ahead or drop the idea entirely. We’re seeing more people move ahead than drop.”

Read more from David Goldstein and other experts in FundFire.