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Investor Appetite for Hedge Funds Is Soaring—But Define ‘Hedge Fund’

  • Net demand is highest in at least three years, survey finds
  • Customized solutions such as separate accounts gain favor
Pedestrians pass the Wall Street subway station near the New York Stock Exchange.
Photographer: Michael Nagle/Bloomberg

Investors are back to loving hedge funds, if you can still call them that.

Net demand for allocating to hedge funds is the highest in at least three years at 28 percent, compared with 12 percent a year prior, according to a Credit Suisse Group AG survey released Tuesday. That ranks them only 1 percentage point behind private equity among the top alternative asset classes.