According to Absolute Return magazine, 35 new funds began trading during the first six months of 2008 compared with 72 during the same period last year.

But those 35 funds raised a total of $ 19.5 bn, 40 per cent more money than last yearâ??s 72 funds.

Goldman Sachs accounted for more than 40 per cent of the capital raised in its newest funds. GS Investment Partners, run by former proprietary trading desk chief Raanan Agus, manages $7 bn.

The second-biggest launch of the first half was Conatus Capital Partners at $2.3 bn, followed by Lone Pine Capitalâ??s emerging markets Lone Dragon Pine fund at $1.8 bn. Chicago-based Highliner Investment Groupâ??s Alyeska Fund was fourth at $1.5 bn.