Put Away the Hankies, Hedge Funds Still Thriving

The conventional wisdom on Wall Street is that many hedge funds are getting killed by the stock market rally because so many of them are stubbornly bearish.

But once again the conventional wisdom is wrong and many big hedge funds are firmly in the black for the year -- even if they aren't setting the world on fire with their returns.

The CSFB/Tremont Hedge Fund Index, which gauges the performance of more than 400 funds, is up 7.9% since the beginning of the year. That's not far behind the 9.5% rise in the Dow Jones Industrials over the same period. ...