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From Kirsten Bischoff, Opalesque New York:

When institutional investors were asked to rank their concerns about hedge fund investing, performance came fifth on a list topped by "lack of transparency" and "liquidity risk" (SEI "The Era of the Investor: New Rules of Institutional Hedge Fund Investing"). This response bodes well for the continued growth of managed futures, which saw delivered performance in 2008, but faltered slightly in performance during 2009.

After focusing on the most popular of alternatives (long/short equity, distressed, event driven multi strategy, and emerging markets), institutional investors have grown more comfortable and even increased their target allocations for alternatives investing. This has meant more are looking at the strategies that may have seemed more exotic in the past, but through the financial crisis have proven they have less market correlation and better long-term performance (ie, global macro and managed futures).

"After regrouping in 2009 to review strategies, managed futures seems to be high up on the list, especially with institutional investors and consultants," Chris Keenan, Senior Managing Director of Welton Investment told Opalesque.

For firms like Welton the shift in investor interest level towards managed futures is clear. Whereas in ye......................

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