Credit Suisse have forecast that assets under management (AuM) in hedge funds worldwide could grow by an average of 12% in 2014 to reach an all-time high of $2.8 trillion (with an upper quartile forecast of $3 trillion), compared to approximately $2.5 trillion last year, in their annual Hedge Fund Investor Survey.

In addition, the survey also saw regional preference from investors heavily leaning towards developed Europe and Japan, with 43% and 33% of respondents preferring those regions respectively.

Robert Leonard, global head of capital services, said: "In this year’s survey, we witnessed some dramatic swings in investor preferences, such as the increase in appetite for event-driven strategies, while interest in emerging markets strategies declined. At the same time, investors are also cognisant of potential issues such as capacity constraints and a crowded trading environment that could affect the industry in the coming year."

The Hedge Fund Investor Survey is a comprehensive look at the industry with over 500 respondents diversified across all regions and industries, including family offices, consultants and hedge funds.