Long/short equity has become the most sought-after hedge fund strategy for 2013, according to an annual report from Credit Suisse, marking a sharp turnaround from a year ago when spooked investors were steering clear of these funds.

Credit Suisse's prime brokerage division surveyed almost 550 institutional investors with a total $1.03 trillion in assets under management and found that long/short equity-general was attracting 35% of net demand - compared with 12% a year ago - making it the most popular of a 30-strong list of strategies.