lots of baby's get born hairy-- i don't know why or what percentage.. but its not uncommon to see new borns covered with down hair. by the time they are a month old or so, it goes away..
ahhhhhhh....babies!
My daughter was born completely covered with a fine blonde down, except for the 2 inch long auburn hair on her head. In the womb, the fine down protects the unborn and usually falls off inside the womb before birth and you never see it. She was a repeat c-section and was delivered before my due date so that I would not go into labor. Therefore, the down did not have time to fall off and she was born with it. Might I also add, the only hair that ever fell off her after birth was the beautiful auburn, and it came back in blonde. And anyone who has seen the pictures of her and her newborn and sees the auburn...it comes out of a bottle! She is still blonde under it all

Her own child that was just born last week, was delivered 9 days after her due date and barely has any hair at all, head or otherwise.