An overwhelming majority of hedge fund managers already run, or are planning to launch, managed accounts compared to just half saying the same about Ucits-compliant funds.

The results of Credit Suisse's annual hedge fund manager survey showed 47% of respondents already ran managed accounts and another 39% were planning on doing so.

In comparison only 9% of respondents currently offered a Ucits product with a further 41% intending to launch one or investigating how to do so. That number rises among European managers, with over 70% either managing a Ucits hedge fund or looking at it.

Managers were optimistic about the industry's economics. They thought the global asset size of the hedge fund sector would increase from an average estimate of $1.73 trillion at the end of 2009 to $1.99 trillion by the end of 2010.

Less than one-tenth of managers expected average fees to decrease across the board in the foreseeable future but almost two-thirds thought fee reductions would be offered to investors prepared to commit their capital for longer periods.

Respondents said investors' due diligence had increased significantly during the last year. The average length of the due diligence process had grown from 5.8 months to 7.5 months and only 9% of funds completed due diligence within three months.

Credit Suisse's prime services group compiled responses from managers representing over $475 billion in assets under management with 48% of managers in the US, 34% in Europe and 18% in Asia.

Credit Suisse plans to release a second survey into the hedge fund industry at the end of March, aggregating the views and activity of the investor community.

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