The hedge fund industry has survived. In fact, the big are only getting bigger, and would-be clients are slowly wading their way back in. Big pensions and other funds are heavy on cash right now, and there's a sense that those funds will have to be put back to work. A Barclays survey predicts that pensions, family trusts and other investors are expected to invest at least $50 billion in hedge funds this year, reports the Financial Times. This is not a huge amount. Consider that assets managed by hedge funds declined $800 billion to $1,200 billion during the recent crisis.

There are some new wrinkles. Investors seem to be showing a preference for simpler strategies. In addition, we've noted that the balance of power has shifted a bit to investors. They are pushing for annual performance targets that must be met before incentive fees can be charged, a waiver of performance fees during lockups of three years or more, and more liberal redemption policies.  

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