Learning to Love Hedge Funds

June 15th, 2010
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Contributed by: The Mad Hedge Fund Trader
The Wall Street Journal has put together the best history of hedge funds I have found so far. They start with the legendary Fortune Magazine editor, Winslow Jones, who created the first fund out of a shabby office on Broadway in 1948, and generated monster returns over the next 20 years. I learned for the first time that the industry standard 20% performance bonus was borrowed from ancient Phoenician sea captains who kept a fifth of the profits from successful voyages. Jones must have had an historical bent.

They cover the second generation titans, George Soros, Julian Robertson, and Michael Steinhardt, who made their debut in the sixties. I count myself among the third generation along with Paul Tudor Jones and Louis Bacon, who launched funds in the late eighties, when there were still fewer than 200 funds and $25 million was still considered a lot of money. The really big money showed up in the nineties when the pension funds found them.

The Journal then navigates us through the big crisis that followed, including Long Term Capital, Amaranth, and Lehman Brothers. It also correctly points out that the industry's avoidance of ratings agencies kept most funds out of hot water during the financial crisis. Today there are over 10,000 hedge funds, thought to manage some $2.9 trillion which dominate all financial markets. To read the well researched article in full, please click here.
See Source
For Detailed Investor Profiles on these Investors, click below:
Moore Capital Management
Soros Fund Management
Tiger Management
Tudor Investment Corporation
Amaranth Advisors*
Related People: Alex Robertson; Brian Hunter*; George Soros; Greg Coffey; Henry Bedford*; James Pallotta*; Jean-Philippe Blochet; Jeff Eberwein; John Townsend; Julian Robertson; Keith Anderson*; Louis Bacon; Manos Vourkoutiotis*; Nicholas Maounis*; Paul Tudor Jones, II; Robert Donald; Robert Soros; Scott Bessent; Zameer Arora
Related Entities: Amaranth Global Equities LLC*; Amaranth Global Securities Inc*; Amaranth International LLC; Amaranth LLC*; Paloma Securities LLC*:; Tiger Asia; Tiger Consumer; Tiger Global; Tiger Management LLC; Tiger Shark Management; Tiger Veda; Altar Rock*; Amaranth Capital Partners LLC*; BVI Global Fund Ltd; Moore Capital Emerging Markets; Moore Global Fixed Income; Moore Japan Restructuring; Pharos Financial Group (seeded) ; Quantum Emerging Growth Fund; Quantum Fund; Quantum Group of Funds; Raptor Global*; Remington Investment Strategies; Soros Capital LP; Soros European Equity Fund; Soros Quantum Endowment Fund; Tiger Fund *; Tiger Jaguar Fund*; Tiger Management Corp; Tiger Management LP; Tiger Puma*; Tudor Investment Corp; Tudor Investments; Tudor Momentum Futures Fund; Tudor Tensor; Valence Capital Management
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Resources and Featured Partner News

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