Although only 2% of the $14 trillion in institutional assets is currently invested in hedge funds or hedge funds-of-funds, in coming years, that is expected to considerably rise, and with it, dramatic changes in hedge funds, Dow Jones reports. Most notably, hedge funds will offer far greater disclosure, fairer fees and lower-cost, passive choices.

Institutions around the world currently have about $350 billion invested in hedge funds, estimated Kevin Quirk, a partner with Casey, Quirk & Associates. He envisions that nearly tripling by the end of 2010 to more than $1 trillion.

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