Shares in listed funds of hedge funds give owners indirect access to the underlying portfolios, proponents say. However, over the past 12 months, investors in them suffered from falls in the value of the funds and even larger drops in the prices of the equities.

The sector lost about 21% on its investments, but its shares dived 38% to trade at a discount to the funds' net asset value, said broker Winterflood Securities. Discounts rile investors so keenly that many managers promise votes on the future of funds where the discounts exceed 5% over 12 months.