As hedge fund investment performance has stumbled, institutional investors have ramped up the rigor of their pre-investment and ongoing due diligence, subjecting heretofore ignored aspects of hedge fund operations to new levels of scrutiny.  One such area of newfound concern among investors is the role of directors of hedge funds organized in the Cayman Islands.  Accurate or not, the general perception in the hedge fund industry has been that Cayman directors have played a less substantive role in the governance of the hedge funds they are supposed to oversee.  Moreover, as a result of a dearth of qualified directors, certain individuals serve on the boards of dozens of hedge funds, which renders it virtually impossible for those directors to actively participate in the governance of any one fund.  We discuss the evolving role of Cayman directors, and the role of institutional investors in that evolution.