"Hedge fund ethics" may seem counterintuitive. Many contend that hedge funds were a major contributor to the recent financial meltdown, and, moreover, that these funds are run by risk-loving, highly compensated managers who operate behind closed doors. While these points are true to some extent, it is equally important to remember that hedge funds possess a great deal of strategic freedom that enables them to earn above average returns for their investors. This freedom should be preserved in order to take advantage of hedge funds' ability to provide management oversight, improve operational performance, and reduce investor fraud. However, the recent degradation of trust in our financial markets undoubtedly requires a response. Therefore, we will argue the need for a new, more transparent type of hedge fund, and suggest a voluntary, principle-based implementation method intended to ameliorate the recent trust issues exhibited in the hedge fund industry.