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From Kirsten Bischoff, Opalesque New York:

This week Morningstar reported their survey of institutional investors showed very favorable expectations for the future performance of alternative investments. According to the survey, the future for hedge fund allocations is particularly bright:

- More than 60% of institutions and advisors believe that alternatives will be as important or more important than traditional investments over the next five years.

- Hedge funds were the most popular alternative vehicles over the last five years and institutions and advisors expect to continue to increase allocations to hedge funds over the next five years.

Adapting to communication requirements of institutions at first impression This means that hedge funds have the potential to pull in large allocations, but securing assets from institutional investors require much greater levels of communication than managers have previously supplied. "There exists a tremendous gap between hedge fund managers and their understanding and appreciation of the process of marketing versus their counterparts in other areas of investment management," Kevin Kasper, Principal at BK Communications Group told Opalesque.

As the hedge fund industry struggles to regain the assets lost during 2008, it is more likely hedge fund managers will need to adapt to the communic......................

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