If I were invested with a manager and all of a sudden the market was down 20 percent and my manager was only down 2 percent, I'd question that.

Five years ago, the strategy was to pick the top 10 stocks you like and swing for the fence. But do it in a way that if you were wrong you didn't lose your shirt (meaning you have short positions to protect you)...that's not what it looks like now.

The most obvious impact of Bayou will be that people will ask how good their consultants' due diligence is. How good are their questions and what should they ask that they haven't asked yet?

Looking ahead, people will dig deeper, look harder and wait longer before investing.

It's hard to predict what the tipping point will be, but when you have a number of influential and outspoken firms (taking a stand), it's going to raise the ire of the companies trying to do the deal.

People will want to understand where the conflicts are and how they might affect a consultant's independence.

There are certainly plenty of opportunities to put $500 million worth of capital in the hedge fund space. I think by and large Yale is looked upon as a preferred investor, and therefore I think a lot of managers would be open to having discussions with them.

It's a result of investor demand and the type of managers coming into long/short and where they cut their teeth.