Citi Prime Finance (Citi), a division of Citigroup Inc. that provides prime brokerage and other services to hedge funds and institutional clients, recently surveyed the landscape of “liquid alternative” investment products, which include alternative mutual funds, exchange-traded funds (ETFs) and funds organized in the European Union (EU) as Undertakings for Collective Investment in Transferable Securities (UCITS). A report based on Citi’s survey provides valuable insight on the recent growth in alternative mutual funds and ETFs in the U.S. and alternative UCITS in the EU. The growing popularity of such products can present opportunities for hedge fund managers to expand their product offerings and raise additional capital from investors. See “How Can Hedge Fund Managers Organize and Operate Alternative Mutual Funds to Access Retail Capital (Part Two of Two),” Hedge Fund Law Report, Vol. 6, No. 6 (Feb. 7, 2013). This article, the first of a two-part series, provides a comprehensive summary of the portions of the report covering the shifting role that hedge funds play in an institutional investor’s portfolio; how regulatory changes have affected the hedge fund market and helped to make liquid alternative investments more attractive; the growing “retail” demand for liquid alternatives; and Citi’s predictions for the growth of the retail alternative market segment. See also “Dechert Partners Aisha Hunt and Richard Horowitz Discuss Strategies and Challenges for Hedge Fund Managers Wishing to Enter the Alternative Mutual Fund Space,” Hedge Fund Law Report, Vol. 6, No. 20 (May 16, 2013).