The growing number of hedge fund collapses this year could drive hedge fund managers to scrutinise costs more closely in current volatile markets and lead to changes in how they run their businesses.

A survey of London-based small and medium-sized hedge funds carried out by KPMG and PCE, an infrastructure provider, showed average costs amounted to almost half of management fees and that one in 10 managers were not covering costs with their management fees, plunging some into net losses.