Hedge Fund Underperformance

I don't know if it is true, but I am hearing a lot of hedge funds are fairing poorly in 2010 and that could put a lot of pressure on the funds to outperform in the remaining few months of the year.  That means extra risk and usually that will be risk taking on the long side.  It is something to think about if the market is holding up and funds start to chase performance.  Anecdotally, hedge funds still have not fully re-risked and many are expecting to buy at lower prices or are hedged with lots of shorts.  The fundamentals aren't great, but that's not really a big secret.