RJ and Makay

Institutional investors are showing greater confidence in hedge funds, suggests a new survey conducted jointly by SEI and Greenwich Associates. Of the institutional investors surveyed, 54% said they plan to increase their hedge fund allocations over the next year.

However, their renewed commitment to hedge funds comes with certain strings, particularly requirements for increased transparency and risk management. In fact, 75% of respondents said risk management infrastructure is the second most important hedge fund selection criteria. Seventy-nine percent said clarity of investment philosophy is “very important.”