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Day-to-day management of macro risk exposure is vested in Gupta, who reports directly to Cooperman.

INVESTOR BASE AND CAPACITY

Omega has between 100 and 150 clients. About 40 percent of clients are tax-exempt entities, 30 percent non-U.S., and 30 percent high-net-worth investors. Cooperman offers different partnerships for investors with different tax statuses. As with his portfolio of stocks, no one client dominates. According to NACUBO public documents, endowment clients include Clark University, Franklin and Marshall College and Rensselaer Polytechnic Institute.

Does tax efficiency play a role? Omega is sensitive to tax issues (e.g., tax-loss selling at year-end), but it is not the main driver. Fundamental analysis is key. Omega is considering an equity-only product that will have a three-year lock-up and be capped in the $250 million area. With the three-year lock-up, a product is a bit more tax efficient.

On a quarterly basis, Omega gives clients a listing of the 25 positions generating the largest profit and the largest loss. Current exposure is detailed, as is Omega's view of the market. The only items Omega won't give out are stock-specific short positions.

On the capacity issue, Cooperman says it is a lifestyle decision. He believes he could readily manage $5 billion, but he has no desire to grow to $10 billion. Such a capital base would be more demanding and limit investment flexibility because of size. He is comfortable with Omega's current asset base of $2.6 billion. Omega reached its peak in assets under management in 1998 at $4 billion; the 1998 losses in Russia and related redemptions reduced assets under management.

FREE TIME

While Cooperman is not one to admit to having free time, he gives a lot to charity. "Working gives you money to give to charity, Uncle Sam, or your children. I don't want to spoil my children." Cooperman is active in many charities. He has a foundation that endows scholarships at the Columbia University Graduate School of Business for a student who is a graduate of the New York City public school system. He is also on the