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Hedge fund launches drop 40% in Q2 as liquidations nearly halve
New hedge fund launches declined 40% in the second quarter of 2026, while liquidations fell by almost half, amid rising interest rates and market volatility, according to HFR's latest Market Microstructure Report. An estimated 100 hedge funds launched during Q2, down from 166 in the previous quarter. Liquidations fell to 70 from 129 in Q1, which had recorded the highest number of closures since the second quarter of 2024. The slowdown follows 561 fund launches in 2025, the highest annual total since 2021, while total hedge fund industry assets reached a record $5.63tn at the end of Q2 2026. Eq