For much of 2008, London-based fund management group Toscafund was a bellwether for the hedge fund industry. It mistimed its bets on a market recovery, suffered outflows of funds and faced questions about its future.

In 2009, it has resumed that bellwether role – but this time as a representative of the sector’s recovery. Its flagship hedge fund has returned more than 35 per cent so far this year, making it one of the industry’s best performers.