Many of these pension funds are now favouring a switch from funds
of hedge funds towards direct investment in hedge funds. The drive
towards a direct style of investment comes from the institutional
desire to customize portfolios, and the need for increased
transparency and reduced fees. Since the onset of the fi nancial
crisis we have seen that private sector pension funds have become
more demanding in their liquidity and transparency requirements as
well as the returns they expect from their hedge fund investments.