On December 23, 2009, an arbitration panel awarded $3.4 million to Racetrac Petroleum Inc., an Atlanta-based chain of more than 525 gas stations and convenience stores across the U.S. Southeast.  Racetrac lost its $5 million investment in a former Bear Stearns hedge fund that collapsed in July 2007.  See “How Can Hedge Fund Managers Structure Their Compliance, Reporting and Disclosure Systems to Avoid Allegations of Principal Trading Rule Violations Such As Those Recently Alleged by the DOJ Against Former Bear Stearns Hedge Fund Manager Ralph Cioffi?,” Hedge Fund Law Report, Vol. 2, No. 36 (Sep. 9, 2009).  The award amount represents only 70 percent of Racetrac’s investment, but is significant because it is the first ruling in favor of an investor in one of two now defunct Bear Stearns hedge funds since a jury acquitted the funds’ former managers of criminal charges in November 2009.  We describe Racetrac’s specific claims and the panel’s decision.