The pain kept coming for hedge funds in 2019: if they weren’t being killed off, they were bleeding cash or wringing out dismal returns.
The industry is now on track to record more closures than launches for a fifth straight year, a blow to a market that once minted millionaires at a heady pace. More than 4,000 funds have been liquidated in the past five years, according to data compiled by Hedge Fund Research Inc.
Billionaires Louis Bacon and Jeffrey Vinik were among veterans who rocked the more than $3 trillion industry this year by handing back capital to clients. Many found themselves out of step with the longest running bull market in history, while others faced investor revolt or couldn’t raise enough to stay in the game. Some had just been doing it for too long, and wanted out.