Hedge Fund managers are the epitome of perfection and therefore need no insurance. Right?
No matter how well run your hedge firm is, you are exposed to serious liability risks given the current regulatory environment, volatile market conditions, and the public concern regarding corporate governance.
Just wait until the next market downturn occurs to see how insulated you are.
Who sues Hedge Funds? Try: Investors, Limited Partners, Competitors, Regulatory Agencies, Companies in which the hedge fund has invested, etc.