We may get some additional spates of bad hedge fund news. But for the most part, more people are starting to feel that the worst may finally be over.

Case in point: Goldman Sachs Chief Financial Officer David Viniar said during a conference call with analysts and investors, "It feels like we are pretty much through the redemption cycle and it actually looks like you are going to start to see some money flowing into hedge funds." According to MarketWatch, he also noted that inflows "will be really dependent on performance, but that is certainly what it feels like right now." Hedge funds on average have turned in a strong performance so far this year. The Hennessee Hedge Fund index rose nearly 12 percent in the first half of the year. That counts as its best six-month return since 1999 and certainly beat the average stock mutual fund. 

For more:
- here's the MarketWatch item
- here's an article from Pensions&Investments

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