So far in this century, hedge funds have raised and invested billions with minimal regulation and very little disclosure about their activities. An investor turns over his money to the fund and goes along for the ride, usually without knowing what investments the fund manager has made, with little understanding of the strategies being employed and without access to information about where the fund is headed. If an investor becomes dissatisfied, its only remedy is to withdraw from the fund. Even that has strings attached to it. Still, total hedge fund assets under management are estimated to have soared from approximately $450 billion in 1999 to over $2.5 trillion in June 2008, according to The Alternative Investment Management Association Limited. During the fall of 2008, hedge fund returns plummeted, redemption requests poured in and many funds halted redemptions. Several closed their doors; others sold their assets or have announced plans to do so. Others are satisfying redemption requests with interests in newly formed pools of illiquid securities. Add to this the fallout from Bernard Madoff and a few other high-profile hedge fund stories, and the stage is set for revisiting and rethinking the rights of investors in hedge funds. The change has started even if, for the moment, it is still a trickle rather than a flood. In a guest article, Robert L. Bodansky and E. Ann Gill, Partners at Seyfarth Shaw LLP, and Laura Zinanni, an Associate at the firm, discuss adopting private equity concepts in the hedge fund business model; advisory committees; charging performance fees only on realized gains; standards of conduct and fiduciary duty; most favored nations clauses and disclosure of side letters; investor reporting; indemnification carve outs; minimum levels of insurance; regulatory proposals in the United States and in Europe; pay to play regulation; due diligence; in-kind distribution issues; and more.