The rule that what goes up must come down is normally ascribed to Sir Isaac Newton and his law of gravity. Last year it was a formulation not from physics but from economics – the law of supply and demand – that began pulling hedge fund fees back to earth.

The same law had sustained hedge fund fees at the level charged by pioneer Alfred Jones when he launched a hedge fund in 1949. He charged investors 2% of its assets and 20% of any gains. As demand exceeded supply this century, fees rose, with US manager SAC Capital increasing its performance fee to 50% and UK manager GLG able to levy 30% on some of its funds.