Still room for alternatives in institutional portfolios

We get a lot of mixed messages from the media when it comes to hedge fund allocations. On one hand, it's doom and gloom--big pensions redeeming funds, slashing allocations and demanding fee-related and governance changes. On the other hand, the relatively strong performance of these funds have pensions clamoring for more still, which some think will lead to a big drop in allocations later, as institutions do some rebalancing to account for the poor performance of equities.

AllAboutAlpha.com notes a Casey Quick report showing that in fact institutional allocations to alternative investments of all stripes have remained pretty stable at around 3.5 percent since 2004. So is the glass half full or half empty? I would suggest that strong funds with good performance are staring at a pretty good marketing opportunity right now. 

For more:
- here's the article

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