More than two thirds of the world's largest investors in hedge funds have yet to reach their target allocation, which suggests that more inflows may be coming to hedge funds although they have lost more than one-fifth on their investments this year.

Institutional investors comprise 44.8% of all hedge fund investors, and 55% of hedge fund managers have experienced an increase in the proportion of their money they run on behalf of this segment over the last three years, according to a survey by data providers Preqin .