AMHERST, Mass. (HedgeWorld.com)-The number of chartered alternative investment analysts is growing, but a second generation of applicants are not taking the exams only in the interest of self improvement but because, in some cases, it's required by their employers.

The growth is expected to continue at the same pace, Mr. Asche said. "Part of it's driven by the general view that it's important that the industry take the lead in establishing appropriate standards," he said.

Now financial institutions are taking notice of the designation and are signing up key executives to take the exams and add the letters "CAIA" behind their name.

La Jolla, Calif.-based Altegris Investments' Jon Sundt said that he is encouraging all members of the firm's broker team to get their CAIA designation. Dick Pfister, Altegris' vice president of institutional research and sales, was one of the 43 individuals who passed the level II CAIA exam to become part of the inaugural group of charter holders.

Firms catering to institutional investors are particularly interested in putting employees through the CAIA process. And rightfully so, since one of the main questions institutional investors have is regarding the qualifications of a manager and the firm's employees, Mr. Asche said.

"If the only training people get is on the job, the risk every institution runs is that there will be a gap in that educational process," Mr. Asche said.