While we await word on final 2009 performance numbers for hedge funds, we can at least pronounce that the average fund fared quite well compared to 2008. Last year may well have been one of the best years ever. Gains averaged around 13 percent as the year wound down. 

True, the average gain will not likely beat the average gain of nearly 25 percent for the S&P 500. But while the equity sector fared poorly, other sectors beat the index. Convertible arbitrage strategies for example may end up with gains of over 50 percent.

Specific funds that fared well include David Tepper's Appaloosa Management, which gained about 120 percent after fees, and Kenneth Griffin of Citadel, whose Kensington and Wellington funds gained perhaps around 60 percent, according to Reuters. Even better news: The flow of funds into the industry picked up again. 

For more:
- here's the Reuters article

Related Articles:
Which hedge funds are faring best?
Surprise winner in hedge fund derby
Hedge funds: The future beckons
More on hedge funds faring well
Hedge funds and the December effect