Index

3V Capital, 141 B See Stagg Capital, 143 Bacon, Ashley, 89 Bacon, Louis, 41, 153 A Banc One, 33 Absolute Return, 1, 9 Bank of Taiwan, 28, Abu Dhabi Investment Authority Jos. A. Bank, 95, 96 (ADIA), 96 BarclayHedge, 61, 69, 74, 97 Affi liated Managers Group (AMG), xii Barclays Global Investors (BGI), 101 Alerian, 51, 52 Baring Brothers, 137 Algert Coldiron Investors (ACI), 101 Baumann, Joe, 127 Algert, Peter, 101 Bay Harbor Management, 93 Alpha Magazine, Beacon Group, 32 hedge fundCOPYRIGHTED governance, 118 Beckham, MATERIAL David, 77 Paulson, John, 65 Berger, Michael, 145 Amaranth, 130 Blue Mountain, xi, xii, 88, Anderson, Dwight, 98 Boisi, Geoff, 32–33 AR Magazine, 88, 104 Boulder Total Return Fund (BTF), Aston Villa, 88 157–8 Atlas Capital, 88 Bouteille, Remi, 140–141 Avenue Capital Management, 23 Brady, Chris, 140–141

183 184 INDEX

Brady, Nick, 140 Coldiron, Kevin, 101 Buffett, Warren, 87, 157 Commerzbank, 32 Bush, George H.W., 140 Copper River, 94, 96 See Rocker Partners, 94 C Corbett, Mark, 91 California Public Employee Retirement Craighead, Andy, 38 System (CalPERS), 151 Credit Suisse European High Yield Capital Introduction “Cap intro”, 54 Index, 120 Capital Asset Pricing Model (CAPM), 23, 113, 151 D Capital Markets Investment Program Deutsche Bank (CMIP) 2011 FT survey on capital allocation, See Chase Manhattan Bank, 22–27, 165 35 Deutschmann, Andreas, 39, 144 Case, Dan, 32 Dichev, Ilia, 12, 172 Case, Steve, 32 Dickey, James, 136 CastleHall Alternatives, 130 Dimon, Jamie, 33 Celeghin, Daniel, 97 Doherty, Miles, 39 Chart Group, The, 140 Rupert Dorey, 121 Chase Manhattan Bank, 89,137, 144 Douglas, Michael, 140 Bahrain offi ce, 21 Dow Jones Corporate Bond Index, 7 Hambrecht & Quist acquisition, 31 Dow Jones Industrial Average, 4, 80 Chemical Bank merger, 136 Drake Capital, 92 Capital Markets Investment Program (CMIP), 22–27, 35 E FX division, 140 Economist, The, 32 Internet strategy, 31–32 Einhorn, David, 94 London trading business, 32 Elliott Management, 104 Mergers, 19, 30–33 See Singer, Paul Private Equity business, 36–38 Englander, Israel, 24 Chicago Mercantile Exchange (CME), ePrimus 81 innovative use of internet, 127–128 Churchill, Sir Winston, 77 Eustace, Paul, 144 Citadel, 98 Citigroup F 2007 Purchase of Old Lane Partners, Fairfi eld Greenwich, 133–134 98 Feldstein, Andrew, xi-xii Cleveland Browns, 88–89 Fidelity National, 27 Closed-end funds, 111, 132, 155–158 “Field of Dreams” (the movie), 48 CNBC, 41 Financial Times, 167 Cognis Capital, 118–124 2011 survey on capital allocation, 165 Cohen, Steve, 150 Fears on industry secrecy, 111 Cohodes, Marc, 94–97 Paulson, John, 60 Index 185

Top ten most profi table hedge fund Highland Capital Management, 124 managers for investors, 153 Hollowday, Paul, 119 Flicker, Bob, 22 Horejsi, Stewart, 157 Focht, Mark, 143 Forbes 500 List, xiii I Fortress, 88 Illinois Income Investors, 74 Freed, Marc, 97 See Triple I Integral Investment Management, 134–5 G InvestmentNews, 124 Gates (restrictions on withdrawals), 87, IRS, 139 126 ISDA, 128 Gilligan, Mick, 97 Israel, Samuel, 131 GLG Partners, 124 Goggins, Chris, 136, 139 J See Victory Investment Management, Jasper, Tom, 127 137, 139 Jett, Joe, 137 Goldman Sachs, 1, 32, 51, 97, 134 Jones, Alfred Winslow, 2 Gorton, Dave, 89–90 Jones, Paul, 2, 41, 88, 152, Government of Singapore Investment See Robin Hood Foundation, Corporation, 28 JPMorgan xi, 21, 37, 40, 50, 79, 127, Greenspan, Alan, 80 163, 166, 168 Grosvenor Capital, 88 2000 merger with Chase Manhattan, 19, 31, 33 H Asset Management Division 39 Hambrecht & Quist, 32 Cognis Capital Management, See Chase Manhattan, 31 118–124 Hammond, Gabriel, 51 Hedge fund due diligence, 134, 138 Hanson, Roger, 118 Incubator Funds, 101, 181 Harbinger Capital, 93, 124 Investment Bank, 100 Harrison, Bill, 31–3 LabMorgan, 128 Heath, Arthur, 143–4 London Diversifi ed Fund, 89–90 Hedge funds of funds (FOFs), Private Bank, 38 Advantages, 65 Private equity business, 36, 39 Fees, 65 Rates business, 100 Hedge Fund Research, 6 See also, Heath, Arthur; Strafaci, Ed; Index, 167 Lipper Holdings Hedgebay, 124 JWM Partners, 93 HFR Global Hedge Fund Index (HFRX), 7, 10, 15, 36, 59, K 64–5, 68 Katcher, Gary, 141 HFRI Convertible Arbitrage Index, 69, Kevin Costner, 48 108, 159 Kidder, Peabody & Co., 137 Highbridge Capital Management, 98 Killik & Co., 97 186 INDEX

Kovner, Bruce, 153 Morgan Stanley, 134 Kuwaiti state-run pension fund, 28 Mosler, Warren, 74 Mumbai, local hedge funds, 42 L LabMorgan N See JPMorgan Nasdaq, 131 Lasry, Marc, 23–24 LCH Investments, 60 O Leeson, Nick, 137 O’Connor, John, 36 Lehman Brothers, 93, 124, 141 Offering Memorandum (OM), 118 Lerner, Randy, 88 Old Lane Partners, 98 Libertas Partners, 141–2 See also Pandit, Vikram, Limited Partnership Agreement (LPA), Ospraie, 98 118 Closedown following large losses, 92 Lipper Holdings, 140 Lipper, Ken, 140 P London Diversifi ed Fund, 88–90 Paige Capital, 89 Long Term Capital Management Pandit, Vikram (LTCM), 3, 27–29 Old Lane Partners, 98 1998 collapse, 27 Writedown of investment, 98 Return of capital to investors, 15 Paul Capital, 121–3 Lowenstein, Roger, 29–30 Paulson, John, 60, 65, 83, 152 “The End of Wall Street”, 83 Peloton, 88, 92, 98 “When Genius Failed”, 27 Pfl ug, David, 30 Lynch, Peter, 17 Philadelphia Alternative Asset Management Co (PAAM), 145 M Polygon, 88 Madoff, Bernie, 98, 114, 131, 133–4 Preferred Return, 43 Magellan mutual fund, 17 Preqin, 166–7 Manhattan Capital Management, 145–6 Princeton University, 151 Manufacturers Hanover Trust, 31 Private Placement Memorandum Interest rate derivatives trading, 79 (PPM), 107, 118 Merger with Chemical Bank, 19, 89 Puth, David, 20–21 Master Limited Partnerships (MLPs), 50 R McGuire, Michael, 143 RAB Capital, 124 Meriwether, John, 29–30, 93 Riaz, Shakil, 21–3, 25–6 Collapse of LTCM, 3, 27 Robert Fleming, 32 Merrill Lynch, 82, 119, 134, 141 Robin Hood Foundation, 151 Millennium Rocker Partners, 94 Settlement with SEC, 24 Rocker, David, 94 MKM Longboat, 92–3 Royal Bank of Scotland, 119 Index 187

S T Sanchez Computer, 25–7 Tabor, Myra, 119–123 Scholes, Myron, 28–9 Tepper, David, 1, 153 Securities & Exchange Board of India Tewksbury Capital, 144 (SEBI), 42 Tremont Partners, 2 Securities & Exchange Commission Triple I (Illinois Income Investors), 74 (SEC), 42 Triple Trunk, 143 Seghers, Conrad, 135 See also Heath, Arthur; McGuire, Shapiro, Marc, 31 Michael Sharpe Ratio, 55, 113–114, 130 Trout, Monroe, 144 Singer, Paul, 104 Tudor Investment Corp., 88 Sopher, Rick, 60, 153 Tullett Prebon, 124 Soros, George, 72, 150 1992 Attack on Sterling, 152 U FT article 2010 -Most profi table UBS Capital Markets Group, 29 hedge fund in history, 60 Fees from managing money, V 150 Victory Investment Management, 137, New generation of HF managers, 2 139 AR list of top earners 2009, 1 Stagg Capital, 143 W See 3V Capital Watson, Lyster, 97 Stagg, Scott, 141 “Wall Street” movie, 140 Standard & Poor’s 500, 3 Wells Fargo, 26 Standing, Rob, 89–90 Weston Capital, 143 Stark Investments, 76 See 3V Steinhardt, Michael, 2 Wittlin, Barry, 82 Stewart, Potter (US Supreme Court Justice), 87 Y Strafaci, Ed, 131, 140–141 Yale University’s endowment, 16, 151, Sullivan, John, 119, 123 167 Swensen, David, 16 Yu, Gwen, 12