Trades Taken

Risk-adjusted returns with portfolio considerations

Role of United States

Varies, but typically about 35 percent

Role of Technology

Fair amount of exposure; technology companies are prime issuer of convertible products in United States and Japan

Role of Private Equity

Limited amount of late-stage private equity in Baystar, private placement fund

Role of Macro

None

Allocates to Other Managers

No

Risk Management

Net Exposure

Shorts are 70 to 90 percent as big as the longs

Hedge Ratio

5 to 10 percent

Hedging Technique

Arbitrage

Maximum Leverage

1.5:1 to 7:1

Memorable Loss

1998

Risk Management

Diversify by strategy and geography; use investment grade product when necessary; Maximum risk per position is 2 percent for risk arbitrage and 3 percent for convertible arbitrage

Background Information

Initial Spark

High school

Professional Background

Lawyer

Education

Brown University; Harvard Law School

Motivation/Satisfaction

Solving a puzzle; finding something the market misses

Age

45

Free Time

Children, sports