When Greg Coffey, the sleek-haired hedge fund star, announced at the weekend that he had decided against setting up on his own and would join Moore Capital only days after leaving rival GLG Partners, attention focused on his change of heart amid the worst crisis for the hedge fund sector in more than a decade.

More surprising, perhaps, is Moore’s move to expand – hiring not only Mr Coffey but a team of 12, just as many of its rivals are predicting a massive contraction in the industry. Already dozens of funds are being restructured, closed to redemptions or simply shut down. And many more are on the way, say both managers and industry analysts.