More and more continental European institutions are diving into hedge funds, with the proportion climbing over one-third for the first time. Greenwich Associates found that 35% of institutions in Europe called themselves hedge fund investors, up from 26% last year. What’s more, another 10% say they will begin investing this year, making continental Europe the biggest hotbed for institutional investment in hedge funds this side of Japan. All told, 41% of the region’s institutions say their allocations to p.e. and HFs will rise by 2009, with only 1% predicting a drop. But alternatives’ overall share of assets is not rising, which hedge funds and p.e. stuck at 2% of total assets and real estate dropping from 6% to 5%.