From Hedge Fund Research:
Assets invested in the hedge fund industry increased by $100 billion in the second quarter of 2009, ending at $1.43 trillion...
The Fund of Funds sector however continues to struggle. Looks like in the post-Madoff world institutions want to do more of their own allocations, figuring they can rely on their own due diligence or on consultants (like Aksia), rather than paying a fund of funds. From Bloomberg:
Investors took $33 billion from funds that invest in other hedge funds in the second quarter. Assets in those pools fell to $530 billion from a peak of $825 billion in middle of 2008.