Acropolis Capital Partners, a newly established London-based investment manager, and Io Investors, the relaunched Gensec International Asset Management, have both launched their first fund of hedge funds, garnering some $90m (€101m) at launch.

Funds of hedge funds are becoming a popular vehicle for new entrants into the hedge fund arena as they offer pre-packaged diversification. Investors pay for the manager selection expertise as well as the underlying hedge fund, so only multi-manager products that deliver good performance will survive in an increasingly competitive market.