Many Hedge Funds Still Smarting From the Financial Crisis

``Even as the industry reclaims its former swagger, Citadel and hundreds of other hedge funds are struggling to hit their so-called high water marks, their historic highs at which they can begin collecting profits again. The research firm HedgeFund.net estimates that roughly 35 percent of the 2,500 funds that have continuously reported since 2008 have not recovered — with smaller hedge funds dominating the list. With so many firms yet to make a full comeback, analysts and industry experts anticipate a shake-out in 2011. Troubled funds risk losing top traders or analysts to rivals, or worse, closing down altogether.''