We've noted that medium-sized hedge funds--those that manage between $5 billion and $10 billion--have fared well this year. Indeed, through the first nine months of the year, they experienced higher inflows than outflows, bringing in more than large funds and small funds.

It's probably not a coincidence that some medium-sized funds are starting to close. BVI Global Fund, run by the legendary Paul Tudor Jones, has been closed, according to Bloomberg. Brookside Capital Partners, a $10 billion affiliate of Boston-based private-equity firm Bain Capital, has also closed itself to new investors. You get the feeling that some funds are just now mending rifts with their limited partners. As funds start to post better numbers, there's a feeling of forgiveness in the air after the debacle of 2008. Nothing pleases investors like massive gains, which may be easier with smaller funds. 

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