Record Number of Hedge Funds Liquidated

Hedge fund liquidations accelerated to a new record in the third quarter and outpaced the launches of new funds, according to a report released Thursday.

Hedge Fund Research, a source of hedge fund information and performance data, said that 344 funds closed during the third quarter, topping the previous record of 267 set in the fourth quarter of 2006. Liquidation totals for the year-to-date were up 70% compared with the same three-quarter period a year ago, when 409 funds were closed out.

On an annualized basis, Hedge Fund Research said the current year is on pace for more than 920 fund liquidations, easily exceeding the 2005 record of 848 and far surpassing last year's liquidation total of 563. ...