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sponsibility is diffused often to subportfolio managers. These managers may be less experienced and paid less than the well-known manager.

FOCUS ON SHORT-TERM RESULTS.

And as a hedge fund gets very large, the percentage of hot money investors or turnstile investors (i.e., investors who are quick to come in and quick to go out) also grows in proportion. Tiger was forced to redeem $7.7 billion between August 1998 and April 2000 as investors wanted to get out, and Tiger had no choice but to sell favored stocks at depressed prices.

A Tiger spokesman said the main reason Robertson left the business was too much emphasis on short-term returns and quarterly results. "Many of the hot money investors left when quarterly performance was not up to snuff. Asset managers get judged quarterly."8 Being pressured to manage for quarterly performance as a long-term manager was not something he wanted to do.

SUCCESSION/INFRASTRUCTURE

As Michael Steinhardt of Steinhardt Partners observes, the distinguishing factor of the elite manager club was entrepreneurship. None of the great managers had the ability to build organizations even though they were able to provide superior returns. It had been reported that Steinhardt had discussions at various times with Bruce Kovner, Leon Cooperman, and Jim Leitner.9

If a firm wants to institutionalize, it cannot revolve around one person forever.

Robertson had long been criticized for not grooming an heir. Tiger has been the training ground for a number of hedge fund managers who did well. They include Lee Ainslie (Maverick); Larry Bowman (Spinnaker Technology); Thomas Brown (Second Curve Capital); Bob Carr (JoHo Capital); David Gerstenhaber (Argonaut); John Griffin (Blue Ridge Capital); Andreas Halvorsen, Brian Olson, and David Ott (Viking Global Investors); James Lyle (Millbank Capital); Stephen Mandel (Lone Pine Capital); David Saunders (K2 Advisors); and Arnie Snider (Deerfield Management). (See Table 2.1.)

Reasons for their leaving included the desire for more authority, wanting to lead rather than follow, potential to increase earnings, wanting