A recent J.P. Morgan Capital Advisory Group survey asked more than 200 institutional investors about their perspectives on several hedge fund investment issues. This two-part series summarizes the findings in the survey report, and this second article explores the use of non-traditional alternative investment vehicles, along with investment and operational due diligence. The first article detailed drivers of hedge fund allocations; industry concerns; fee and liquidity terms; allocation sizes and preferences; and performance expectations. For coverage of another recent survey, see our two-part analysis of the ACA 2018 compliance survey: “SEC Exam Experience and Insider Trading Controls” (Dec. 13, 2018); and “Fees, Expenses and Custody” (Dec. 20, 2018).