Hedge fund managers continue to face a challenging capital raising environment.  As such, many managers have extended their reach to find new sources of capital, with a particular focus on institutional investors.  At the same time, Asia-Pacific institutional investors are becoming increasingly educated about the global alternative investment fund industry and have begun to dip their toes into the alternative investment waters.  Yet, to procure investments from Asia-Pacific institutional investors, fund managers must understand these investors and their investment priorities.  With this in mind, Preqin, an alternative investment research firm, and the Global Absolute Return Congress (Global ARC), conducted a survey of Asia-Pacific institutional investors in hedge funds to better understand these investors’ attitudes towards alternative investment funds.  Preqin and Global ARC recently released a report of the study findings (Report).  Overall, the Report indicated that, although weak 2011 performance was a concern among Asia-Pacific institutional investors, confidence in hedge funds remains strong.  This article highlights the Report’s key findings and their implications for hedge fund managers targeting this investor class.