Multistrategy hedge funds have been the ones to beat lately. Why? Managers with plenty of flexibility to move money around among strategies -- shifting investments between stocks and currencies, for example -- have outperformed many of their peers, according to a prominent measure of industry performance from Hedge Fund Research Inc.
Returns so far this year bode well for hiring by some of the bigger, established hedge funds, some of whom (for example, Moore Capital Management) already have taken on investment teams from other fund managers that downsized or closed. Separately, HFR said the rash of fund liquidations during the financial crisis has tapered.