New hedge fund launches are smaller and cheaper

``Hedge fund advisers and service providers – who often spot trends well before they emerge – say there is a long pipeline of new funds being launched as capital flows back into the industry. GlobeOp, which provides administration services to more than 6 per cent of the global hedge fund industry, says it saw almost no start-ups last year after helping to set up 60-70 funds a year in 2004-06. ''