Hedge fund investors: We're happy, really!

Hedge fund growth

Beating up on hedge fund managers is in vogue.

Critics are quick to point out when funds under-perform simple index funds, a relatively common occurrence. Or they gripe about the high fees and lack of transparency among other annoyances.

But the big hedge investors—mostly pensions, endowments and foundations—are sending a different message with their dollars. A large survey of hedge fund investors released Tuesday by Deutsche Bank shows that the funds are sucking in record assets while pleasing their clients.

"Hedge funds continue to establish their growing position within the broader asset management industry, alongside some of the more mainstream asset managers," Barry Bausano, co-head of global prime finance at Deutsche Bank, said of the bank's 2014 Alternative Investment Survey.

Bausano said the industry is predicted to reach a record $3 trillion in assets by the end of 2014, mostly from institutional investors. Hedge funds managed an estimated $2.6 trillion as of Dec. 31, 2013.