Hedge funds: rocket fuel

After months of grim tidings, net outflows from hedge funds are finally dwindling. The rally in equities could soon bring net inflows again. Sure, it’s a fragile upturn. But for now, the improvement in hedge funds’ fortunes could be an accelerant for rising stocks. Eurekahedge reported inflows of cash to the hedge fund industry of $15bn in April, higher than in recent months. Investor redemptions, although still significant at $40bn, were well down compared with recent experience. In other word...