The most obvious impact of Bayou will be that people will ask how good their consultants' due diligence is. How good are their questions and what should they ask that they haven't asked yet?

Looking ahead, people will dig deeper, look harder and wait longer before investing.

People will want to understand where the conflicts are and how they might affect a consultant's independence.

It's hard to predict what the tipping point will be, but when you have a number of influential and outspoken firms (taking a stand), it's going to raise the ire of the companies trying to do the deal.

There are certainly plenty of opportunities to put $500 million worth of capital in the hedge fund space. I think by and large Yale is looked upon as a preferred investor, and therefore I think a lot of managers would be open to having discussions with them.

If I were invested with a manager and all of a sudden the market was down 20 percent and my manager was only down 2 percent, I'd question that.