A record number of hedge funds were liquidated in the third quarter, as the business faces the worst crisis in its history, deepened by the involvement of funds of hedge funds, one of the biggest groups of investors in hedge funds, in the alleged $50bn fraud by Bernard Madoff. Analysis by Hedge Fund Research, the data provider, showed that 344 funds closed during the quarter, exceeding the previous quarterly record of 267, set in Q4 2006. A total of 693 funds had liquidated this year to the end of the third quarter, representing about 7% of the industry and an increase of 70% on the first three quarters of last year.

This entry was posted by Gwen Robinson on Friday, December 19th, 2008 at 4:29 and is filed under Capital markets, Hedge funds. Tagged with Bernard Madoff. Edit this entry.