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Galleon have invested $300 million, which is about 6 percent of total assets. Henry estimates his investment at $35 million to $75 million, about 2.9 percent to 6.3 percent of the total assets.

At several firms, the policy is that employees cannot have their own personal trading accounts. This is to ensure integrity and prevent front-running. This is the case at Galleon and Elliott Associates. At Citadel, a comprehensive personal trading policy restricts employees from transacting securities in Citadel accounts or portfolios. All employee trades must be preapproved.

TRACK RECORD.

Each manager has a long track record with consistently superior performance during varying market conditions. Of those interviewed, all have at least a seven-year track record of their own as a hedge fund manager. Cumberland went back to 1970. Singer's inception was 1977, Henry and Sussman both started in 1981, and Kovner and Kingdon both started in 1983.

The length of performance record translates into independent experience over various economic and business cycles including 1990, and 2000, which were negative years for the stock market (as measured by the S&P), as well as 1994, and 1998, which were difficult years for hedge funds. Over a relatively long period, these managers generated consistently superior returns.

Performance has generally been excellent over a long period and over different market conditions. The compound average annual net return ranged from about 14 percent, slightly higher than the S&P, to 34 percent per year. Due to the different styles used and the different performance objectives, it is unfair to compare the managers against each other. Some managers may use an S&P benchmark or a blended benchmark with the Russell 2000, while some absolute managers don't have a benchmark. The use of leverage and the resulting volatility also make it difficult to compare returns. Furthermore, different environments are more favorable or less favorable to certain styles.

As a guide, despite the caveats, Singer and Sussman have an average annual return of about 14 to 15 percent. Cooperman, Cumberland, Stark, Och, Kingdon, and Ainslie are in the 17 percent to 25 percent