Since their record losses in 2008, hedge funds have staged a comeback, posting a 20% gain last year. So why are many investors still wary?rnPartly it's because they could have made more in the S&P 500-stock index, which returned almost 27% in 2009, and avoided those pesky, high fees. Some simply aren't happy with the way they were treated when hedge funds barred redemptions during the market's darkest days. Pension funds, foundations, and wealthy individuals yanked $118 billion from hedge funds in the first 11 months of 2009, and many continue to hoard cash. "Before, managers could relyrnon their returns to sell themselves," says Andrea Gentilini, head of strategic consulting at Barclays Capital's Prime Services unit in New York. "Now investors want more transparency and communication."
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