For much of last year, we've said that while hedge funds have been volatile, they have held up better than mutual funds and that they were not likely to lose the support of key institutions. As the credit crunch rolls on, there are signs that pensions and other institutions may be rethinking what once seemed like a strong commitment to alternative investments.

AllAboutAlpha.com notes some research from Casey Quirk that suggests hedge funds are now taking a back seat to traditional investments in the minds of many managers. That said, few institutions are expected to get out of the class all together, it's really a matter of maintaining their current allocation. Not so long ago, it seemed that many were boosting their allocations. 

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