The credit crisis and volatile financial markets led to the fewest new hedge fund launches since 2000 in the first quarter, with liquidations of existing funds also rising, according to Financial News.

The hedge fund industry saw 247 new funds launched in the first quarter this year, down from 251 in the same period last year and the lowest quarterly total for eight years, based on figures by Hedge Fund Research, the Chicago-based data provider.

Meanwhile, 170 hedge funds liquidated during the first quarter, compared with 138 in the same period last year. Single-manager hedge funds experienced the highest level of liquidations, with 155 funds shutting their doors during the first quarter. Equity-focused strategies saw the greatest turnover, accounting for more than 50 per cent of both launches and liquidations.

Macro hedge funds, which have been the best performers during the worst of the credit crisis to date, accounted for another 20 per cent of launches. Macro funds have continued their good performance this year and are up more than 12 per cent, according to the HFRI Macro Hedge Fund index. Macro funds make directional bets on the moves of bond, stock, commodity, currency and other markets.