Although hedge fund assets under management (AUM) appear to be on the upswing, many managers continue to struggle to raise and retain capital.  It is more critical than ever for hedge fund managers to understand the mindset of institutional investors and to seize upon opportunities to grow their AUM.  In that vein, in June 2012, Citi Prime Finance released its third annual survey of hedge fund industry professionals, entitled “Institutional Investment in Hedge Funds: Evolving Investor Portfolio Construction Drives Product Convergence” (survey).  The survey provides valuable insight into the thinking of institutional investors (who are now the dominant allocator of capital to hedge funds) and other hedge fund industry professionals.  The survey also highlights historical trends in hedge fund asset allocation; predicts sizeable growth in hedge fund AUM by 2016; and describes various opportunities for hedge fund managers to grow their AUM.  This article summarizes the key business development takeaways from the survey.