Hedge funds experienced a notable rally in the first quarter, driven by significant gains in equities, some commodities, and the dollar. This period marked a positive shift for the industry, which has seen stockpicking hedge funds come back into favor for the first time in two years. Additionally, active US funds have recorded their best quarterly outperformance since 2007, according to Bank of America. This resurgence is attributed to big stock-pickers outperforming benchmarks to a degree not observed since 2007, suggesting a potential for even better performance ahead as the market broadens.