Hedge funds have produced ice-cold returns in recent years. That doesn't seem to be deterring investors. Banks and "wealth managers" — which includes high net worth investors, family offices, and investment companies, boosted their allocations to hedge funds last year — according to the latest annual Towers Watson/Financial Times Global Alternatives Survey. The increases were small — 1% or 2 % — but they went directly into new funds and also into funds of hedge funds, the one-stop shops that vet and select portfolios of hedge funds.All of this begs the question of how to square data on steady or slightly increasing allocations to hedge...