Is the hedge fund debacle of 2008-2009 finally over? There are many signs that it is. Assets under management have broached the $2 trillion level. Performance has rebounded. Many companies have taken steps to upgrade their internal processes and create more investor-friendly policies.

One obvious development has been the rise of more liberal redemption schedules. Investment News reminds us that some companies are still struggling with legacy assets that remain firmly locked up. It noted that, "Among the open and closed hedge funds with significant assets to liquidate, sources said, are those managed by GLG Partners, now a part of Man Group; Harbinger Capital Management; Highland Capital Management; and RAB Capital."

These firms stand in stark contrast to most others, which have cleaned up their portfolios. The level of assets that remain locked up is tiny--just $100 billion. But investors have long memories, and some are now fed up. More limited partners are now taking action to force some sort of liquidation. One expert was quoted as saying, "What's probably causing the most frustration for investors is the set of hedge fund managers who could, but won't, liquidate their portfolios, because they think they're worth more than the market says they are." But we're seeing funds get more aggressive as liquidity returns. Hopefully, most of this will stay out of court.

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