On July 1, 2009, State Street Corporation released two papers on alternative investments as part of its Vision series of thought-leadership reports.  The papers examine two components of alternative investments, hedge funds and private equity, and their future prospects amid the global economic downturn.  According to State Street, both industries will likely adapt to the changed investment environment caused by the financial crisis and continue to provide significant long-term opportunities for institutional investors.  Our article examines the report on the hedge fund industry, entitled “Alternatives: New Views of the Hedge Fund Industry.”  In particular, our article addresses the potential ramifications of two trends identified by the report: (1) a migration to third-party administration, custody and specialized services; and (2) a comprehensive reconsideration of financial regulation.