I am hearing that hedge funds are broadly up 3% for the year. That is impressive given that they don't run anywhere close to 100% long. I am also hearing that they have all turned bullish. The returns are likely the result of a self fulfilling cycle. Hedge funds tend to cluster into the same stocks and when they turn bullish they buy more of those same stocks, improving the performance of their portfolio and the broader group.
There are undoubtedly many highly paid hedgies patting themselves on the back, feeling like the geniuses that they always knew they were. Last year was a fluke. Until the cycle turns down again ofcourse. Don't get me wrong. There are undoubtedly geniuses in the hedge fund world but for every real genius there are at least a dozen others who think they are.