Over the past decade, the hedge fund industry has grown – big time. According to estimates, the number of hedge funds increased from 2,000 to 8,000, assets under management went from US $67 billion to US $800 billion, and inflows of money to hedge funds have never been greater. This growth was essentially driven by the attractive riskadjusted performance achieved by hedge funds, their ability to protect capital in negative equity markets, and the shrinkage in proprietary trading activities, which coincided neatly with a welter of hedge fund launches.