The spokesperson did not wish to reveal the identity of the hedge funds, but said that the discount is available for the rest of the year and is then up for renegotiation. It is not unusual for new hedge funds to lower their fees to attract capital.

Last month, HSBC opened up its Next Generation Fund to high net worth and institutional investors. The fund, which invests in new and upcoming hedge fund managers and is nearing $100 million in assets under management, aims for a return of 12-15 per cent over a market cycle, with target volatility of 8-10 per cent. The HNW share class carries a minimum investment of $25,000, while the threshold for institutional investors is $2.5 million.

Recent data from Deutsche Bank, Germany's biggest lender, showed that global hedge fund assets under management hit $2 trillion at the end of 2011 despite minor outflows in the final quarter. Investors put a total of $70 billion into these funds last year, up from $55 billion in 2010.