Since 1990, the hedge fund industry has grown from 640 funds worldwide with total assets of $39 billion to an estimated 9700 hedge funds with more than $1.7 trillion in assets under management by mid-2007.

The increase translates to a compound annual growth rate of 26%, putting the industry on pace to surpass the $2 trillion mark. Once geared to the needs of high-net-worth individuals and select large endowments, hedge funds are increasingly serving a full range of institutional investors, including corporate and public pension funds, a broad range of foundations, and endowments.

With this change in its investor base, the industry is now under pressure to adapt to the high expectations and cautious approach characteristic of institutional investors, all while preserving the investment attributes institutions found appealing in the first place.

To help hedge fund managers understand the competitive requirements of the institutional landscape, SEI analyzed industry trends and sponsored a survey of more than 100 institutional investors. The survey was conducted by Infovest21 in the first half of 2007.

Our comprehensive review of the hedge fund industry gives you the insights you won’t find anywhere else:

• What institutions want, and don’t want, from hedge funds
• The top three concerns institutions have when investing in hedge funds
• How to overcome the five challenges hedge funds face to be entrusted with a larger share of assets 

The five critical challenges outlined in this report are based on:

• Comprehensive review of hedge industry trends
• Consultations with independent alternative investment experts
• Independent survey of institutional investors

Our report shows that hedge funds are increasingly serving a full range of institutional investors.  But not only do institutional investors have needs and concerns distinct from those of traditional hedge fund clients, their demands continue to evolve.

 Please use the link below register for your copy of our report, “Five Critical Challenges for Hedge Funds Taking Aim at the Institutional Market.”

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