Hedge Funds Staged Big Comeback in 2009

Coming off its worst calendar year loss in history, the hedge-fund industry enjoyed a strong comeback in 2009, as three separate indexes that track hedge-fund performance recorded gains of 18% or more. That didn't stop hedge funds from losing $131 billion through investor redemptions in reaction to the financial meltdown that began in 2008. But the money that remained was apparently put to good use, as a rally in the equity markets and more aggressive investment strategies produced the second best year for hedge funds in the last decade.