A new survey published by Ernst & Young, entitled “Global hedge fund survey: Weathering the storm” has concluded that the 2009 global downturn has forced hedge fund managers to respond swiftly and dramatically to the demands of investors.  The survey, based on one hundred telephone interviews with the largest hedge funds in the United States, Europe and Asia, and representing roughly half the industry, found that significant changes to fund governance, administration and investor reporting over the last year has enhanced investor confidence without adding significant costs.  The fund managers polled also observed the rapid improvements to transparency and governance as proof that the industry can effectively respond to the needs of investors.  These observations stand in stark contrast to managers’ concerns regarding increased regulatory oversight, which they view as imprecise, of less utility to investors and overly expensive.  This article details the survey findings and its analysis of the Draft EU Directive, and discusses implications for the hedge fund industry in the year to come.