We noted recently that hedge funds have staged a comeback following the pyrotechnics of 2008. Performance has improved, and assets are again flowing in. Total assets under management has risen, again recovering to the $2 trillion mark. But the industry has changed--for the better in many ways. Limited partners are no longer afraid to ask questions. General partners, in general, feel the need to treat them better. Fees may be dipping a bit. Redemptions policies and the like are now much more favorable to the investor. The rise of third-party administrators also is boosting confidence.

So it looks golden, right? Reuters notes that one potential trouble spot is regulation. But I can't see registration and a bit more Fed oversight as anything that will affect the industry. In fact, it may help instill confidence, until we get another LTCM or another broad meltdown anyway. 

For more:
- here's the article

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