The rapid growth and maturation of the hedge fund industry has sparked a debate about the role of marketable alternative investments in institutional portfolios. This report is examines whether the growth and maturation of the industry has made marketable alternative investments less compelling, explores other trends that are transforming the competitive landscape in the industry, and provides direction on the implications of these trends. A comprehensive set of exhibits covers long/short hedge funds, U.S. distressed investing, convertible arbitrage, merger arbitrage, and capital structure arbitrage.