Investors shrugged off poor returns, the collapse of high-profile hedge funds, high fees and the credit squeeze to pour money into funds of hedge funds last year. Funds of hedge funds' assets under management increased 30% to reach a total of $1.3 trillion. "The risk of investing in a single-manager hedge fund has reached its highest," said Gideon Nieuwoudt of Union Bancaire Privée. "This makes it more attractive to invest through a fund of funds."

Related Summaries