However it's notan unconditional commitment

26 /PRNewswire-FirstCall/ Institutional investors appearcommitted to hedge fund investing, but hedge fund managers will facewider-ranging and more in-depth scrutiny of operations and investmentprocesses. Hedge funds fulfilling performance expectations and embracingtransparency will be those that retain and capture assets, according to aglobal survey report released today by SEI (Nasdaq: SEIC) and GreenwichAssociates. The survey report, entitled "Hedge Funds Under the Microscope:Examining Institutional Commitment in Challenging Times," points to a need forgreater transparency and enhanced client reporting and communications fromhedge fund managers. These are especially needed in the wake of changinginstitutional expectations brought on by the worst year on record for hedgefund performance.SEI collaborated on the survey with Greenwich Associates, initially pollinginstitutional investors in Continental Europe, the United Kingdom, and UnitedStates at the end of August. As the financial crisis deepened, the firmsre-interviewed respondents in November, to help gauge the impact of marketturmoil on institutional attitudes and plans concerning hedge funds.The initial survey revealed that over 90 percent of institutions polled eitherincreased or maintained their allocations to hedge funds in the last twoyears. The remaining respondentshad investments that were subject to lock-up provisions. At the same time,while the percentage planning to increase target allocations droppedsignificantly between the first- and second-round surveys (signaling a periodof reassessment), only one institution reported lowering its target hedge fundallocation between the first and second rounds."The silver lining for hedge fund managers is that institutions appearcommitted to hedge funds as an asset class," said Phil Masterson, ManagingDirector for SEI's Investment Manager Services division."However, it's notan unconditional commitment.

Hedge fund managers must recognize and react tothe changing expectations of their institutional clients.Greatertransparency and enhanced client reporting and communicationsalong withfulfilling investor performance expectationswill be the pillars of a hedgefund manager's success." In fact, performance has regained its spot as the top institutional investorconcern, with more than 80 percent of second-round respondents citing poorperformance as their biggest concern regarding hedge funds.In a similarsurvey conducted by SEI in 2007, institutional investors had rankedperformance as their third-biggest worry, behind headline risk andtransparency. Given the losses from the hedge fund industry, the increasedemphasis on performance is to be expected. Investors also cited lack ofliquidity, funds not achieving their stated objectives and headline risk astop concerns. While portfolio transparency was named by just one out of four institutions asa "very important" selection factor in the first-round survey, investors namedportfolio transparency as the number one investment criteria demanding moreweight in the second survey. In fact, among second-round participants planningto decrease allocations by at least 10 percent, the top-ranking reason waslack of transparency."Transparency has always been a central concern for institutions investing inhedge funds, but it has taken on added importance in the wake of the financialcrisis," says Rodger Smith, Head of the Strategic Consulting Group atGreenwich Associates."It's likely that institutions will become even moredemanding on this count in light of the intense publicity surrounding theMadoff affair."The survey also noted the increased expectations for enhanced client service,given that client reporting and communications were two of the top areaspointed to as demanding more weight in the midst of the market volatility.Importantly, in the first-round survey, investors indicated that reporting andcommunications were just as important as performance.The white paper is published by the SEI Knowledge Partnership, which providesongoing business intelligence to SEI's investment manager clients. To requesta copy of the 22-page white paper, please visit About SEI's Investment Manager Services Division SEI's Investment Manager Services division provides total operationsoutsourcing solutions to global investment managers focused on mutual funds,hedge and private equity funds, exchange traded funds, collective trusts,separately managed accounts and institutional and private client services.

The division applies operating services, technologies, and business andregulatory knowledge to each client's business objectives.Its resourcesenable clients to meet the demands of the marketplace and sharpen businessstrategies by focusing on their core competencies.About SEI SEI (Nasdaq: SEIC) is a leading global provider of outsourced assetmanagement, investment processing and investment operations solutions. Thecompany's innovative solutions help corporations, financial institutions,financial advisors, and affluent families create and manage wealth. As ofSeptember 30, 2008, through its subsidiaries and partnerships in which thecompany has a significant interest, SEI administers $431 billion in mutualfund and pooled assets and manages $162 billion in assets. SEI serves clients,conducts or is registered to conduct business and/or operations, from morethan 20 offices in over a dozen countries.

Foundedin 1972, Greenwich provides institutional financial services firms and thosewho participate in its research with accurate, systematic managementinformation that helps them meet their global business needs. For moreinformation on Greenwich Associates, please visit Contact: Media Contact:Dana Grosser Jeanine CannetoSEIGreenwich Associates610-676-2459 SOURCESEIDana Grosser of SEI, 1-610-676-2459, , or Media, JeanineCanneto of Greenwich Associates, 1-203-625-4342, . Signs of Life at the Bottom of the ACCIt started last week when Maryland and Virginia, teams most had written off, beat teams Clemson and North Carolina, teams most expected to challenge for the ACC, and continued this week.Duke, the seemingly most traditional bottom team of any conference, beat North Carolina State. Rightfully so, too.Last season, Oregon was eighth nationally in offense. The Ducks were third in total rushing yards, but first in yards per attempt. They were also among the nation's leaders in points per game.This year started a little rocky, but now in the last three games, all conference games, Oregons defense has given up only 12 points. A closer look shows three by Cal on a kick off fumble recovered by Cal for a negative eight-yard drive for a field goal.