On November 16, 2012, the Commercial Division of the High Court in the British Virgin Islands issued a landmark decision bearing on the distribution rights of redeemed versus continuing investors in a hedge fund in liquidation. Among other things, the decision provides insight to a hedge fund investor who must evaluate whether to redeem its investment in a fund that is expected to liquidate in the near future. This article summarizes the factual background and legal analysis of the decision. See also “Seventh Circuit Approves Federal Receiver’s Hedge Fund Liquidation Plan Subordinating Priority Rights of Redeeming Investors,” Hedge Fund Law Report, Vol. 3, No. 50 (Dec. 29, 2010).