There looks like being no slowdown in the flow of cash into funds of hedge funds. More than half the $47bn (€35.3bn) that went into hedge funds in the first nine months of the year went to funds of funds, according to Hedge Fund Research. Leading industry players expect this share to rise in the year ahead, as more institutional investors enter the market.

Derek Doupe, head of business development for funds of hedge funds at Schroder Investment Management in London, said: "I think we'll see the same if not higher levels of flows next year and funds of hedge funds will increase because of institutional investors' preferences."