A recent federal court decision limited the application of the “selective waiver” doctrine of attorney-client privilege and work product protection in internal investigations conducted by hedge fund managers. See “Six Recommendations for Hedge Fund Managers Seeking to Protect Themselves from Waiver of Attorney-Client Privilege When Faced With SEC Document Requests,” Hedge Fund Law Report, Vol. 6, No. 3 (Jan. 17, 2013). This article discusses the factual background of the case, related court decisions and the court’s legal analysis. This article also restates the salient points from a law firm memorandum on how the decision should inform the approach of hedge fund managers to internal investigations and interactions with regulators. For more on preserving privilege during internal investigations, see “Ten Recommendations to Help Hedge Fund Managers Conduct Successful Internal Investigations,” Hedge Fund Law Report, Vol. 6, No. 9 (Feb. 28, 2013).