Some investors might feel Banque Privée Edmond de Rothschild has a lot to answer for. The Swiss-based private bank, part of the Rothschild family empire, launched the world’s first fund of hedge funds 40 years ago to pool investments from its wealthy clients in a portfolio of hedge funds.

In recent years, funds of hedge funds became a cornerstone of many wealthy individuals' portfolios. While credit was easy and hedge funds delivered the absolute returns they promised, it was a highly profitable business for fund providers and a decent enough bet for investors.