Reflation watch hedge fund edition
Here’s another bullet point in our ongoing tally of reflation indicators. It’s the return of risk in the form of start-up hedge funds (John Meriwether included).
Hedge fund launches are growing in size and number after months of subdued activity in the wake of the collapse of Lehman Brothers last year.
The revival of fund start-ups is one of the clearest signs yet that the $1,400bn global hedge fund industry is starting to return to better times.
London-based Tyrus Capital on Monday became the largest fund to launch so far this year. According to people close to the company, investors placed about $800m with it before the cut-off for initial subscriptions closed. The fund is expected to raise a further $300m before the end of the year.
Theleme Partners, set up by Patrick Degorce, the co-founder of The Children’s Investment Fund, also launched on Monday with an estimated $200m under management. In the US, Greenwich-based Pia Capital, set up by ex-Moore Capital trader Christopher Pia, launched with an estimated $300m under management in June.