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From Kirsten Bischoff, Opalesque New York:

The global financial crisis has greatly changed the way investors evaluate hedge fund managers for allocations. While performance is still a key determinant in getting on "the list" of funds being tracked for potential investments, the bar has been raised in terms of infrastructure requirements a fund needs to have in order to be considered by even smaller investors.

Investors looking at hedge funds today have almost limitless possibilities. Hedge funds that were once closed to new assets are now open, and as many institutional investors have already indicated, everything is negotiable, even fee structures. With such breadth of choice, deciding where to allocate has become more a process of elimination than of decision-making. For hedge funds this means that any and every sign of weakness will knock them out of the running.

This shift in paradigm is a potential bonanza to service providers as both large and small hedge funds are coming to the realization that best of breed service providers can help a firm build an institutional style investment vehicle.

"The events of the past year have illustrated the direct link between operational improvements and hedge funds' ability to attract and retain assets from investors," Andrew McCollum, a consultant at research firm Greenwich Associates consultant said regarding survey results the firm just released. Greenwich, and study sponsor post-trade, pre-settleme......................

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