Plunging equity markets, rising inflation, and macroeconomic uncertainty contributed to a decline in new hedge fund launches in the second quarter, and the trend hasn't reversed in the last three months.

Only 80 new hedge funds were launched in the second quarter of 2022, the lowest launch rate since the fourth quarter of 2008, when only 56 new funds debuted, according to a report by hedge-fund research firm HFR. Compared to the first quarter of 2022, new hedge fund launches dropped by 56.7%.