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Hedge fund launches exceeded liquidations in 4Q 2017 for the second consecutive quarter, and fees are at record lows, as total hedge fund industry capital began 2018 at a record $3.21 trillion, according to the latest report released by HFR Market Microstructure Report, which conducts research and analysis of the global hedge fund industry. An estimated 190 funds launched in 4Q, up from 176 in 3Q and in line with the number of 4Q16 launches, bringing the full year 2017 total to 735 fund launches, the study found. The study also found that fund liquidations declined sharply in 2017 as industry asset growth accelerated, with 784 funds closing in the year, representing a decrease of 25% from the 1,057 liquidations in 2016. * The average management fee for funds launched in 2017 was 1.34 percent, representing a slight increase over the 1.31% management fee for 2016 launches.

The decline of the HFRIFWC was led by losses in quantitative, trend-following CTA strategies, though all main strategy areas experienced losses for the month, according to Hedge Fund Research Inc. (HFR). HFR also found that Quantitative trend-following CTA strategies diverged with Discretionary Fundamental Macro strategies during the period as the HFRI Macro: Systematic Diversified Index sharply declined by -6.5%, the largest monthly loss since inception, and offset the +2.8% gain in January. The HFRI Equity Hedge (Total) Index lost -1.5%, partially offsetting the +3.0% return in January, and bringing the YTD 2018 return to +1.4%, which leads U.S. equities for both February and YTD. “Hedge funds declined in February for the first time since October 2016, as long latent global equity market volatility soared and U. S. interest rates increased, with certain hedge fund sub-strategies posting impressive, negatively-correlated gains through the volatility spike,” said Kenneth J. Heinz, President of HFR, in a statement.

Financial services technology company Koger Inc. announced that it has enhanced its compliance technology to provide a comprehensive tool for financial crime prevention. The company’s KURE software handles all aspects of “anti-money laundering” and “know your client” due diligence, as well as complete Customer Lifecycle Management, according to the company. Founded in 1994, Koger provides software for investor services, compliance and business process management, serving global financial institutions, banks and asset managers including hedge funds, private equity funds and mutual funds. With offices in the United States, UK, Europe, Asia and Australia, Koger works with global financial institutions and asset managers, including hedge funds, private equity funds, mutual funds and money market funds.

Drawing on data compiled for the 2018 Preqin Global Hedge Fund Report, Preqin has created league tables of the most consistent performing hedge funds. I-Alpha had the highest consistency score of 98.6, over nine basis points higher than the second most consistent top performing relative value fund. All 10 of the most consistent top performing multi-strategy hedge funds were based in Brazil. DLM Invista Asset Management ran two of the 10 funds, and its vehicle DLM Hedge Conservador was the highest scoring multi-strategy fund with a consistency score of 95.0. 7.