Gottex Fund Management, the $8.2bn (€5.7bn) listed Swiss fund of hedge funds, has bought up a smaller peer – a deal that could set a precedent for smaller managers struggling to build their businesses in the beleaguered sector.

Gottex will take over the investment management of the three directional funds of hedge funds managed by New York-based Constellar Capital. These comprise two multi-strategy funds and an Asia-focused product.