The perfect storm battering hedge funds, of looming regulation worldwide and political vilification in Europe, has not deterred aspiring managers from launching products, as start-ups outnumbered liquidations in the fourth quarter of last year. Analysts Hedge Fund Research (HFR) estimated 230 funds launched while 165 liquidated between September 30 and December 31. This continued the trend of the previous quarter, when launches outnumbered closures for the first time since the start of the credit crunch. However, over a 12 month period, more funds shut down than opened up in both 2009 and 2008. Fraser McKenzie, managing partner at Swiss-based hedge fund 47 Degrees North, said many managers were still getting going and, while the risks of investing in young funds could be greater, so too were the potential rewards.