We've noted that hedge fund performance in the first quarter was pretty good. They're also faring well in drawing new investors. About $60 billion in fresh funds flowed into the hedge fund industry in the first quarter. That has nearly tripled the level of the previous quarter. We're on pace for another record year. The first-quarter amount was almost half of the record $126 billion in new assets for the full year 2006, according to data from Hedge Fund Research. The top asset class was equity hedge. Relative value arbitrage was second. In general, the amount of new money is somewhat surprising given the lackluster performance toward the end of last year. But pension funds must have made a decision that they need big gains.

For more:
- here's an article from ii.com