The hedge fund Catch 22

If, as many expect, hedge fund returns are squeezed and equity markets recover, the 10% incentive fee plus 1.5% management fee of fund of hedge funds is brought into disturbingly stark relief.

Could Europe's naturally conservative members of pension trustee boards at institutions soon be saying: "We were right to hang back"?

The average fund of hedge funds on Tass's 189-strong database has returned 3.8% annualised over the 36 months to 30 June, and -2.02% over the past three months. Admittedl