) --

Goldman Sachs

(GS) - Get Report

sees institutions allocating more money to hedge funds, the investment bank stated in a report Wednesday.

The report was on

Och-Ziff Capital Management Group


, one of the few publicly-traded hedge funds. Goldman analysts view Och-Ziff "as a share gainer as institutions migrate back to hedge funds -- a trend we expect to accelerate over the coming quarters," the report stated.

Och-Ziff's publicly-listed competitors

Blackstone Group

(BX) - Get Report


Fortress Investment Group


are better known as private equity firms, though they have large hedge fund divisions, as do Goldman and other large banks like

JPMorgan Chase

(JPM) - Get Report


(C) - Get Report


Morgan Stanley

(JPM) - Get Report


These banks, and others like

Bank of America

(BAC) - Get Report



(BCS) - Get Report

would also benefit from a hedge fund revival through their prime brokerage businesses, which provide services to hedge funds.

Total assets invested in hedge funds grew from $490 billion in 2000 to a peak of $1.87 trillion in 2007, according to estimates from

Hedge Fund Research

(HFR), which tracks the industry. The industry now stands at $1.54 trillion through the third quarter, having lost $154 billion in 2008 and $145 billion so far this year, according to HFR.


Written by Dan Freed in New York