Still room for small hedge funds

Launching a hedge fund in many ways is harder and easier than ever. The competition for funds is intense, and not everyone can get in the game. At the same time, there are host of near turnkey service providers that allow funds to get up and running quickly. As of the end of September 2007, 863 funds were launched, and 408 funds were liquidated, Investment Dealers' Digest notes. In 2006, 1,518 new funds were launched, while 717 were liquidated. The record was set in 2005: 2,073 launches and 848 liquidations. So there are still plenty of believers out there willing to start up. There are certainly advantages to being small. The ability to get in and out of positions is certainly one. In the end, numbers will tell the story.  

For more:
- here's the Investment Dealers' Digest article