420HC has a strong tendency to leave tenacious burrs on the edge, which I'm sure is behind the 'hairy' cutting you mention.
If re-bevelling on diamond hones, even the finer ones, they'll rip through this steel easily, which leaves the edge very toothy, if not downright ragged. I've been in the habit of at least fine-tuning those edges on wet/dry sandpaper (400 grit or higher), which is a bit less aggressive, and will do a better job of cleaning up the ragged burrs left by the diamond. More often than not, I don't even use diamond for 420HC anymore. After the sandpaper, I strop on green compound on leather (this steel really responds well to it), followed by bare leather. I personally prefer using sueded leather for this (both with compound and bare, on the inside face of my leather belt).
David