> en kvað sér vel hug um segja ef slíkir væru margir

"but said he felt it boded well if [it should happen that] there were many like him"
"but said he had a good feeling about it [how matters would turn out] if there were many such [as he was]"
"but said he had high hopes if there were many like him"

See CV, 'hugr', IV.
http://lexicon.ff.cuni.cz/png/oi_cleasbyvigfusson/b0291.png