The filter housing has a filter outlet portion with a central filter outlet passage. The outlet portion includes a terminal end portion defining a filter nozzle. The filter nozzle forms a nozzle passage between the filter nozzle and the pump housing. The nozzle passage communicates with an annular recess formed in the filter outlet portion. The annular recess receives return bypassed hydraulic fluid from a regulator valve for distribution into an inlet stream of fluid flowing through the filter outlet passage. The inlet stream velocity is increased which increases the pressure at the pump inlet. The increased pressure at the pump inlet allows the pump to operate at higher speeds without cavitation.