By Kay Nguyen and Nathan O'Neal
It looks like April showers brought May optimism to the hedge fund industry, as the funds continued to fare better than many other investments. By all indications, money is flowing back into funds of hedge funds. The recent upturn has certainly brought smiles to the faces of investors. According to a Goldman Sachs survey, hedge fund investors have been happier in 2009.

Many media outlets are sold on the idea that revitalization may be in progress, and new hedge funds are beginning to emerge. Even those who are not investing in hedge funds want to get in on the action. AllAboutAlpha.com reports that more investors trust the added prestige of hedge funds.

Fidelity is taking advantage of the hedge-fund hype by launching a line of mutual funds that would deliver hedge fund-like results. And as an unusual dynamic develops between hedge funds and mutual funds, some financial analysts are wondering if hedge funds may have improved corporate governance? Others may find that question comical--the economic meltdown has hardly been the crowning moment for corporate governance.

The big, hedge-fund personalities continued to make headlines last month. King Midas himself, John Paulson, appears to be stockpiling gold after a shaky month (though he is still ahead for the year). Meanwhile, no one envies Bill Ackman. His proxy fight with the Target Corp. continues to rage on and his month ended on a sour note when none of his director candidates were elected.