One in 20 hedge funds fail

One in every 20 hedge funds that saw the dawn of 2004 failed to see in the 2005 New Year, according to data compiled by Hennessee Group from its hedge fund index. The US firm found 5.3% of funds with assets exceeding $10m that report to the 800-fund database on 1 January had failed by 31 December. The figure fell in line with Hennessee's six-year attrition rate of 4.96%, but was a step up from the 4.3% in 2001 and 3.8% in 2002. The 2004 rate was the same as for 2003, and less than the 6.4% recorded in 2000. Charles Gradante, Hennessee Group's managing principal, said the findings contras...