Large fund of fund managers dominating hedge fund industry

Power in the hedge funds industry is becoming increasingly concentrated in the hands of a few funds of funds managers, the industry has been warned.

At the same time, there could be a backlash from disappointed investors who were promised high returns, said David Smith, chief investment director at multi-manager group at GAM.

Speakinng to delegates at the recent Alternative Investment Summit in London, Smith said the increasing rise of funds of hedge funds and the dominance of a few top players