November hedge fund news had some bright spots. Big name analysts have been forming a grass roots movement of sorts, as independent firms have been springing up all over. Even Goldman Sachs has been shedding some of its stars, and though this bodes poorly for the company's shareholders, it has only fueled the hedge startup boom. Investor-friendly changes, such as transparency and fee flexibility, have also begun to take shape.

There's no avoiding the fact that the industry is far from safety. Hedge funds all over are now fighting tooth and nail to restrict client departures. The rising price of gold could pose a major threat to market stability. And though hedge fund managers Cioffi and Tannin were acquitted of charges, many questions remain about the industry's role in the financial crisis.

The acuqittal has also both emboldened head Galleon trader Raj Rajartnam and added greater imperative to the government's case against him. The trial is looking to be long, heated, and ugly.