Hedge fund investors showed an overwhelming preference for conservatively managed funds during the third quarter of 2000, according to Tass Research, the information and research subsidiary of Tremont Advisers.

Investors committed $3.5bn (€4bn) to funds pursuing long/short equity strategies. These funds, which tend to outperform in volatile markets, hoovered up around 83% of the $4.2bn in new assets committed to hedge funds during the three months to September.