A recent decision by the United States District Court for the Eastern District of California addressed whether the typical legal arrangements between a hedge fund of funds manager and a fund under its management confer standing on the manager to bring claims on behalf of the fund against an underlying manager and other entities.  The decision is relevant for hedge fund and fund of funds managers in identifying the appropriate party to serve as a plaintiff in litigation, and for evaluating their D&O insurance and indemnification arrangements.  See “Exculpation and Indemnity Clauses in the Hedge Fund Context: A Cayman Islands Perspective (Part Two of Two),” Hedge Fund Law Report, Vol. 4, No. 1 (Jan. 7, 2011).  This article explains the relevant factual background, the constitutional requirements to establish standing in federal court and the primary lessons of the decision for hedge fund managers.