The US saw only 55 launches of hedge funds in the $50m (€39.8m) or more category last year, compared to 81 new funds of that size or more in 2007, a 32% decline. Collectively, they raised $23bn, down from $31bn the previous year, according to a new report.

Massive redemptions and dramatic outflows caused the plunge in launches and shrank hedge fund assets-trends that might further deteriorate, according to a survey from HedgeFund Intelligence.