The 2008 metrics for the hedge fund industry are well known: About 15 percent of funds shut down, according to Hedge Fund Research. Assets fell from about $2 trillion in 2007 to about $1.3 trillion now. But Fortune, among other media outlets, has picked up on the idea that a renaissance may be underway.

The outflow may have stopped and there are lots of opportunities out there: Debt, asset-backed securities and investments taking advantage of TALF. The bull market in stocks is also bringing out hedge fund investors. So we're seeing a new crop of hedge funds sprout, though no one thinks we're in for a return to the pre-credit crunch days. The industry seems a bit more grounded now. Investors are less gullible and fund managers know there's a high compliance and disclosure bar to meet. Indeed, hanging over all this is the reality that new regulation is on the way. 

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