Page 100

U.S. VERSUS GLOBAL.

Rajaratnam focuses completely on the United States. Most of Galleon's trades are U.S.-based or American depositary receipts (ADRs) of non-U.S. companies. Rajaratnam wants to stick to local expertise.

About 95 percent of Cumberland's trades are U.S.-based. Singer says the majority of his trades are also U.S.-based. Cooperman finds most of his opportunities in the United States as well. Usually about 75 to 80 percent of the Omega portfolio is U.S.-focused. Others at Omega focus on global and international.

The United States has always been the dominant piece of Ainslie's portfolio because this is the area he knows best, and where he finds the most consistent performance. It is the most efficient location to short stock. Current exposure to the United States is about 75 percent.

About 25 percent of Och's overall portfolio is European-focused. Within that amount, 35 percent of the merger arbitrage portfolio is European arbitrage. The majority of the convertible arbitrage portfolio is composed of Western European and Japanese bonds.

More global in nature is Kingdon's global long/short equity investing. Kingdon allocates about 35 to 50 percent of the portfolio outside the United States. Two-thirds to one-half of Griffin's portfolio is focused on the United States, with Europe and Japan playing significant roles.

Further along the continuum, Stark's historical mix has been 65 percent non-U.S. to 35 percent U.S. Japan has been a large focus at times. Stark feels the inefficiencies are greater outside the United States. Europe had historically been a small allocation, but in the past year that has changed. Historically the mix is 65 percent non-U.S., 35 percent U.S.

Tepper's opportunistic approach brings him into non-U.S. markets frequently (e.g., emerging markets, Russia, Korea). Sussman also has a global orientation.

Kovner's global macro trading and Henry's focus on global futures and currencies can be more non-U.S. oriented.

Macro trading as a percentage of the portfolio has generally shrunk over the years. For Kovner, global macro typically accounts for 30 percent to 60 percent of the portfolio; it is a smaller percentage than it had been 30 months ago.