New hedge fund launches are projected to reach their lowest level in 24 years, according to a report by hedge fund research firm Preqin released on Wednesday. This decline is attributed to challenging fundraising conditions.

By the end of the third quarter of 2024, hedge fund managers had established 123 new funds, marking the lowest number since at least 2000, when 191 funds were launched. In contrast, hedge fund launches peaked at 697 in 2017.

Preqin noted that most of this year’s new funds are focused on stock trading.