Our take on hedge funds has been that while there has been lots of negative news, the big institutions still seemed quite enamored of these funds and wouldn't scale back in drastic fashion. That still may be true, especially if hedge funds stage a bit of a come back this year. Even in 2008, the average hedge fund didn't decline nearly as much as the average equity mutual funds.

As of now, a survey by Deutsche Bank has found that a third expect more than $200 billion to be withdrawn, after a net $155 billion was taken out last year, reports the Financial Times. Other may stay on the sidelines until the industry changes its policies enough to lure them back. Some pensions may scale back out of political concerns. We may see an accelerated move toward managed accounts. 

For more:
- here's the article

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