Smaller fund-of-hedge-fund firms have grown faster than their larger counterparts over the last three years, as larger firms were hit by changing investor needs.

More than half of the fund-of-hedge-fund firms surveyed by Casey, Quirk & Associates and BNY Mellon, or 53%, increased both revenue and assets under management in the three years between 2010 and 2012, compared with 47% that did so from 2009 to 2011.