RT Journal Article SR Electronic T1 Institutionalization of Hedge Funds JF Special Issues FD Institutional Investor Journals SP 69 OP 73 VO 2002 IS 1 A1 Leslie Rahl A1 Stephen Rahl YR 2002 UL https://pm-research.com/content/2002/1/69.abstract AB Funds are in the process of being “institutionalized” both from the inside out and the outside in. Whereas traditionally, hedge funds have been small boutiques with one or more “star” traders and little infrastructure to support them, they have grown in many cases to a size and scope that necessitates infrastructure—the antithesis of what many of the managers wanted when they left large bureaucracies to start hedge funds. At the same time, the mix of investors and, therefore, the requirements of investors have evolved. While for many years it was high net worth individuals who were the primary investors in hedge funds, institutional investors are increasingly investing in them. As a result, it is rapidly becoming an imperative for the hedge fund industry to strike a balance between the changing needs of its growing community of institutional investors against the often times conflicting needs of the hedge fund managers. This article will explore the shifting trends in the hedge fund space and their implications on hedge funds and their investors.