What Hedge Funds were upto in Q1 2012?

Given that Hedge Funds underperformed the S&P500 in Q1 2012 because they didn't want to repeat the mistake of last year, i.e. they ramped up risk in Q1 but got creamed by market downturn in Q2 and Q3, means if markets survive the treacherous Q2 and Q3, then we're set up for the "mother of all rallies" in Q4 (you read it here first :).