Assets held in a popular new type of onshore hedge fund have swelled to more than $35bn (€25.37bn) from almost nothing two years ago, data provider Hedge Fund Research said Wednesday, as investors spooked by losses in 2008 and the Madoff scandal seek greater transparency on their hedge fund investments.

HFR said more than 200 hedge fund products now comply with European Union guidelines known as Ucits III, or Undertakings for Collective Investment in Transferable Securities, and nearly all of them were launched within the past two years.