Multi-strategy hedge funds have become a victim of their own success, as bloated assets under management and declining performance for many have made raising new money more difficult in recent months. 

It has been a change of fortunes for what was once the hottest sector within the $4tn hedge fund industry, with $30bn flowing out of multi-strategy funds in the year to June — the first outflows since 2016 — according to a September Goldman Sachs report.