(by Fiona Mitchell)

In the nine months of the year, hedge funds received $46.6 billion with $26.4 billion positioned in so-called funds of funds.

The number of hedge funds almost tripled to 7,100 in the past decade. Investors ask more and more advisers for help in buying funds.

``Pension funds are using fund of fund firms as consultants. It’s impossible for pension funds to know all the hedge funds,’’ said David Aldrich, a head of securities industry banking in Europe for Bank of New York.

Hedge Fund Research’s database, which tracks 4,000 funds, says that over a third of funds are the funds of funds.