Despite their increasing popularity among powerful institutional investors and pension plans, there's very little proof that in coming years the transparency of hedge funds will increase, or that their exorbitant fees will decline.

In addition, a new study from the Boston-based research firm Cerulli Associates reveals, as many of the nation's 8,000 hedge funds drill deeper into the investing public, the threat they pose to the traditional mutual fund industry may have been exaggerated. The fervor over a new Securities and Exchange Commission rule that will require hedge fund managers to register with the regulator might also be overblown.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.