As the financial markets continue to be roiled in a credit crisis that has sent volatility up across the board for nigh on one year, its impact is starting to show tellingly on the hedge fund industry – if not on the performance1 or asset flows2 front, then on the fund launch and liquidation front. The first half of 2008 has seen not only the lowest launch activity (272 funds), but also the highest number of liquidations (243 funds) during any comparable period over the past nine years.
