As hedge funds become more mainstream, Penny Green of the Superannuation Arrangement at the University of London is warning pension plans not to succumb to "herd mentality." Speaking at a conference in London, Green noted that a number of pension funds in Europe are going into hedge funds "because everybody else is... without thinking it through." Green pointed out various issues associated with hedge funds, such as liquidity, transparency and possible governance issues. French business school Edhec may beg to differ. Its research seems to fly in the face of the warnings, as 60% of European institutional investors view themselves as well-informed about HF risks, as they allocate an increasing percentage of their assets to alternative investments. Informed or not, Edhec also says that 75% of European institutional investors invest in funds of hedge funds, even though they don't necessarily perform well. Still, expect a dramatic change in that figure in the future.