Mr Singer has launched an eponymous investment firm, Singer Partners. He said it will initially manage around $1 billion but could ultimately oversee up to $15 billion. He left UBS Global Asset Management two years ago.

Among his business strategy ideas is lower fees – he intends to charge a 1 per cent annual management fee and 20 per cent haircut on performance, in contrast to the two per cent annual fee and 20 per cent performance fee structure that has been typical in the hedge fund industry.

"The industry is begging for some level of integrity in performance fees that they haven't seen in the past; performance fees that actually align the interests of managers and clients," Mr Singer was quoted as saying by Reuters. "The 2 and 20 fees don't do that."

Last year, hedge funds on average fell by almost 19 per cent, the worst performance on record for this type of investment vehicle.