As hedge funds pick themselves up from average losses of 28% last year and billions in redemptions, they will increasingly offer separately managed accounts to provide investors with liquid strategies and attract new assets, according to a report from TABB Group.

These managed accounts will grow 70%, from $468 billion this year to $790 billion, over the next two years, TABB predicts.

Among the 62 U.S. hedge funds with $130 billion in assets under management that TABB surveyed for its report, 77% said that their investors' top three concerns are operations, safety of strategy and liquidity risk. Investors are now asking more questions on topics previously seen as a minor part of the due diligence process, from safety and soundness of assets to greater insight into the investment process, including actual holdings.

Besides a movement to offer more managed accounts, hedge funds are likely to lower fees over the next two years. While "2 and 20," 2% flat fees and 20% of upside performance, has been the norm in the industry, the new reality, according to TABB is more like "1.75% and 21.93%." Hedge funds are doing whatever they can to chase the limited supply of capital at hand. In addition, survey respondents said they have lowered the average lockup period from 13 months to 10 months.