Thought hedge funds were risky? Not enough for some investors. A wave of new “best ideas” hedge funds are looking to meet demand from wealthy investors for highly concentrated investments that provide the potential for high returns but also greater risk.

Backers of these concentrated funds, some of which hold as few as six holdings, say they are keen to take on more risk as volatility of almost every asset class has been driven to record or near-record lows by a flood of liquidity.