Salient to Investors:
Hedge Fund Research said 873 hedge-funds closed in 2012, the most since 2009, but the net number increased after 1,108 firms were started. Hedge funds managing over $5 billion got 65 percent of Q4 2012 fund inflows, firms with under $1 billion got 8.7 percent.
Average industry management fees declined in 2012 to 1.56 percent, and performance fees fell to 18.54 percent.
In 2012, the average equity-focused hedge fund underperformed the S&P 500 for a third straight year. Equity hedge funds rose 8 percent from 2009 through 2012 versus 36 percent for the S&P with dividends reinvested.
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