Institutional Investors

Institutions changing fund rules, SEI finds


Institutional allocations to hedge funds remained steady this past year, but the average allocation to hedge funds generally seems to be on the rise, according to a recent SEI survey report, The Era of the Investor: New Rules of Institutional Hedge Fund Investing.

US investors saw their average target allocation to hedge funds rise to 13.8% in 2009 from 12.6% in 2008. Reported allocations were highest among foundations and endowments, which reported mandates three times the size of those by public and government plans.

SEI's survey revealed a continued commitment to hedge fund investing among institutions with nearly 80%