Institutional money to target hedge funds

An increasing portion of capital flows into hedge funds will come from institutions over the next two years, according to Randall Dillard, partner at Lionhart Capital Management. He thinks institutions will make up 65% of total hedge fund flows by 2010, an increase of around 10% from the middle of 2008.

The institutional investor base is diverse. Cumulative hedge fund net flows from institutions are currently made up of 65% from retirement plans, 15% government, 15% endowments and foundations and