New hedge funds continue to find the capital-raising environment to be challenging, and once they have raised capital, most funds look for ways to retain it. This was one of the findings of a recent study conducted by Seward & Kissel that found that all of the funds it examined had lock-ups or investor-level gates (with some funds employing both). In its annual study, Seward & Kissel analyzed several key findings relating to hedge funds launched in 2016 by new U.S.-based manager clients. This article summarizes the key takeaways from the study, including investment strategy trends; management fees and incentive allocations; liquidity terms; fund structures; and seed capital. For coverage of previous editions of Seward & Kissel’s annual study, see: 2015 Study (Mar. 31, 2016); 2014 Study (Mar. 5, 2015); 2012 Study (Apr. 11, 2013); and 2011 Study (Feb. 23, 2012).