The hedge fund industry is well over a trillion dollar business. Estimates put the number of hedge funds at around 9,000 today, up from an estimated 3,600 funds managing roughly US$450 billion as recently as 1999.1 As the industry grows, so does its impact. Hedge funds add liquidity to financial markets and, as others have put it, hedge funds act as “shock absorbers” that can stabilize financial markets during crises.2 Further, hedge funds promote the integrity of securities markets by engaging in the types of trading that make securities markets more efficient, and they provide opportunities for businesses and investors to shift and manage risk. More efficient and liquid financial markets promote capital formation and business enterprise.