A lack of good hedge fund managers, as well as the exponential growth in demand for absolute returns, is leading 66% of investors to put money into unproven new funds, according to Goldman Sachs' European Hedge Fund Symposium Investors Survey.

Roger Denby-Jones, executive director at Goldman Sachs International in London, said that investors typically demand a two-year track record before investing in a new fund, or at least negotiate lower fees.