A lot of people were expecting some hedge fund industry pyrotechnics last year. But the explosions were fewer and farther between in aggregate than many expected early on. Amaranth [1] was certainly a big news event, but in hindsight it was less than catastrophic. It was certainly not another Long-term Capital Management. All told, 83 U.S. hedge funds went under in 2006, representing about $35 billion in assets under management, according to Absolute Return. The industry manages nearly $1.5 trillion. Others biting the dust: Capital Management's Animi Master Fund, a fund run by Sagamore Hill Capital, and Saranac Capital's Citigroup Multistrategy Arbitrage/Saranac Arbitrage fund. There will always be hedge funds that make super-aggressive bets that do not pan out. These are hedge funds after all.

For more:
- here's a brief [2] from the AP