Hedge fund investment is expected to surge by more than a quarter this year, but a growing number of investors are expecting fees to fall, according to a survey by Goldman Sachs.

Results of the survey, which polled 476 active investors with $650bn (€539.6bn) of assets invested in single manager hedge funds, shows they are expecting to grow their investment in the sector by 28% in 2006, matching the expected pace of growth last year.