Institutional investors and financial advisers are still enthusiastic about alternative investments, despite their weak performance in 2008, not to mention their correlation to stocks and liquidity issues, Morningstar found in a survey.

More than 60% of institutions and advisers believe that alternatives will be as or more important than traditional investments over the next five years. A majority expect to allocate 10% or more of their portfolios to alternatives in that time, and 25% plan to allocate a full quarter of their assets to alternatives. The most popular alternative investment class is hedge funds.

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