This article presents a time-series analysis of the evolution of hedge fund investor characteristics and expectations based on the Deutsche Bank Alternative Investment Survey (DBAIS): 2002–2009. Interesting findings include the following: 1) new hedge fund allocations are primarily determined by a common factor, rather than by specific views on particular strategies; 2) allocations to credit-sensitive strategies are negatively correlated with allocations to noncredit strategies;3) investor strategy allocations tend to chase returns and do a poor job of timing future strategy returns; and 4) the use of managed accounts has dramatically increased.