Hedge funds have defied the expectations of investors who had hoped the catastrophic losses suffered by the industry last year would result in an improved deal, with fewer than one in 100 managers reducing fees or improving their liquidity terms.

Last year, hedge funds staggered to their worst recorded annual loss, of 19%, according to data providers Hedge Fund Research, leading many investors to expect hedge fund managers to lower their fees and reorganise how they charged them. Clients also expected that they would be allowed to exit portfolios more quickly and often.