The majority of hedge fund and fund of hedge funds assets globally are from institutional investors, and one-third of those assets now come from pension funds, according the Alternative Investment Management Association.

Traditionally, high-net worth individuals accounted for most of the assets managed by the hedge fund industry, but, according to Tom Kehoe, research manager at AIMA, institutional investors have been steadily increasing in significance in recent years.

“And we think they now account for an absolute majority of AUM. Pension funds account for about a third of that, or one-sixth overall. These figures are estimates, but they are informed by all the data at our disposal,” he said.