Hedge Fund Investors Are Increasingly Institutions

The big players in the hedge fund world are no longer high-rolling, wealthy individuals, but pension funds, university endowments, foundations and government authorities, an industry trade group said Wednesday.

High net-worth individuals traditionally accounted for the lion's share of hedge-fund assets, but institutional investors have been "steadily increasing" their slice of the pie in recent years, according to Tom Kehoe, research manager of the Alternative Investment Management Association.

Whereas three years ago, institutional investors accounted for about one-third of total assets under management, they now account for half. Pension funds have been particularly aggressive, now holding about one-sixth of total assets, according to AIMA. ...