The Reds boss, who took over from Rafael Benitez at the start of July, has been hamstrung by the ongoing sale of the club which has so far failed to provide new owners and investment.
Last week Hodgson brought in Fulham defender Paul Konchesky and Porto's Portugal midfielder Raul Meireles to supplement the arrivals of ex-Chelsea star Joe Cole, keeper Brad Jones, Serbia's Milan Jovanovic, Denmark's Christian Poulsen and young Rangers centre-back Danny Wilson and the re-signing of Fabio Aurelio.
"I think he has done very well but time will tell. You have to judge signings after Christmas - good or bad," said the 32-year-old.
"We've started quite nicely and hopefully the couple of players we have brought in (late on) will help.
"Everyone realised we needed a left-back so Konchesky came in and Raul Meireles coming in is something we can all look forward to.
"Maybe he can replace the Xabi Alonso/Aquilani-type of player so I think it is looking okay."