Institutional Investor's Alpha Magazine - February 2008 - (Page 3)

Letter from the editor Change Agents EDITOR Michael Carroll EDITOR Michael Carroll EXECUTIVE EDITOR Michael Peltz MANAGING EDITOR David Schutt INTERNATIONAL EDITOR Tom Buerkle U.S. EDITOR Jeffrey Kutler EDITOR-AT-LARGE Firth Calhoun ART DIRECTOR Nathan Sinclair ART DIRECTOR Irene Ledwith ASSISTANT MANAGING EDITORS Tom Johnson ASSISTANT MANAGING EDITORS Lewis Knox (Research), William Loob (Editorial Production), (Research), Jeffrey Kutler (Global Operations and Sathya Rajavelu (Director, ResearchTechnologyGroup), Justin Schack (Wall Street, Corporate (Editorial Banking), Deborah F. McClellan Finance) SENIOR EDITORS LochRudolph (Money ManageProduction), Barbara Adamson (London), Steven Brull (Los Angeles), Karl Cates, ment) Jane B. Kenney (Editorial Research), EUROPEAN EDITOR Tom Wrighton (Paris) Britt Erica Tunick, Jo Buerkle (London) SENIOR WRITERS Frances Denmark, Michael Shari BUREAU CHIEF Kevin Hamlin (Hong Kong) STAFF WRITERS Dan Freed, David Lanchner SENIOR EDITORS Steven Brull (Los Angeles), (Paris), Andrew Capon (London), Jane B. Kenney SENIOR ASSOCIATE EDITOR Tucker Ewing (Editorial Research) ASSOCIATE EDITORS Sivert Hagen, SENIOR WRITERS Deepak Gopinath, Justin John Livingstone, WeiQing Lu (Research Schack Timothy Roberts (Research Specialist), Specialist), Carolynn B. Tetro STAFF WRITERS Rich Blake, COPY CHIEF David Wray (Paris) David Lanchner Imogen Rose-Smith, Julie Segal SENIOR CONTRIBUTING EDITORS Fran Hawthorne, SENIOR ASSOCIATE EDITOR Tucker Ewing Harvey D. Shapiro, Stephen Taub ASSOCIATE EDITORS Emily Fleckner, Sivert CONTRIBUTING WRITERS Pam Abramowitz, Hagen Danielle Beurteaux, John Aidan Byrne, Phil Davis, Udayan Gupta, Scott Martin, COPY CHIEF David Wray Neil O’Hara, Jaye Scholl, Irwin Speizer SENIOR CONTRIBUTING EDITORS Fran Hawthorne, COPY DEPARTMENT Deputy Copy Chief: Hal Lux, Harvey D. Copy Editors: Ingrid Accardi, Bill Christophersen; Shapiro, Charles Smith Ruth Hamel, Veronica Majerol (Tokyo), Stephen Taub, Joan Warner ASSISTANT TO THE EDITOR Elizabeth Simroe CONTRIBUTING EDITORS Colin Barraclough, ART DEPARTMENT Deputy City), Jonathan Kandell, Lucy Conger (Mexico Art Director: Diana Panﬁl; Associate Art Director: Anthony Scerri; Lois Madison Reamy, Kazuhiko Shimizu Senior Designer: Lee H.Wilson; (Beijing),Sabrina Henley; Associate: Leah Nathans Spiro Photo Editor: Daniella Nilva; COPY DEPARTMENT Deputy Copy Chief: Jeff CranAssociate mer Photo Editor: Alden Gewirtz; Color Imaging Manager: John Miliczenko ASSISTANT TO THE EDITOR Elizabeth Simroe CHAIRMAN & CEO Gary Mueller ART DEPARTMENT Deputy Art Director: Patrizia Bove; GROUP PUBLISHER Christine Cavolina PUBLISHER Joy DeSanto Associate Art Director: Stephanie Lora; Photo Editor: PUBLISHER, INTERNATIONAL Spencer Wicks Anastasia Pleasant; Color Imaging Manager: PUBLISHER, ASIA Wendy Gallagher John Miliczenko ONLINE SALES DIRECTOR Chris DeAngelis EDITOR AND PUBLISHER, SPECIAL PROJECTS PRESIDENT & CEO Christopher R. Brown Ernest McCrary PRODUCTION DIRECTOR Brian Gill PUBLISHER Christine Cavolina DIRECTOR OF FULFILLMENT Robert Tonchuk PUBLISHER, INTERNATIONAL Lisa Traeger CHIEF OPERATING OFFICER David E. Antin PRODUCTION DIRECTOR Alpha,TMGill Institutional Investor’s AlphaTM and Brian 225 Park Avenue South, New York, NY 10003; (212) 224-3300; Fax: (212) 224-3171. MANAGING DIRECTOR OF RESEARCH PRODUCTS © 2008 Institutional Investor, Inc. No statement in this magazine is Denise as a recommendation to buy or sell securities. Neither to be construedMurrell this publication nor any part of it may be reproduced or transmitted DIRECTOR OF FINANCE AND OPERATIONS in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval David E. Antin system, without the prior written permission of Institutional Investor magazine. For Investor’scontact TM and Palmieri (212) 224-3675; Institutional reprints, Alpha Dewey Alpha,TM 225 Park AvFax: (212) 224-3563; e-mail: dpalmieri@iinvestor.com.(212) enue South, New York, NY 10003; (212) 224-3300; Fax: Subscription hotline (800) 437-9997; Overseas (44-20) 7779 8999 224-3171. I’D MAKE A LOUSY POLITICIAN. I’m very much a creature of habit, and — as the U.S. presidential primary season has made clear — to succeed in politics you need to be an agent of change. I’m not just referring to Barack Obama, whose campaign platform “change we can believe in” helped propel him past fellow Senator Hillary Clinton in mid-February in the race for the Democratic nomination with primary victories in Maryland, Virginia and the District of Columbia. Every candidate has been throwing around the “c” word. If Obama prevails over Clinton — who has been quoted as saying, “I embody change” — he will likely face another change artist, Republican Senator John McCain, in the November election. The power of change is not unique to the U.S. Last spring conservative Nicolas Sarkozy rode the promise of economic reform to a convincing win over Socialist Ségolène Royal in France’s presidential election, saying in his victory speech, “The French people have chosen change.” (The French got more change than they bargained for when Sarkozy divorced his wife of 11 years last fall and three months later married singer and former model Carla Bruni.) Presidential politics aside, one of the biggest recent changes by governments in Europe and the U.S. has been the push to develop cheaper, greener sources of renewable energy, as Senior Editor Loch Adamson writes in this month’s cover story, “Fueling Opportunity” (page 24). In March 2007, European Union leaders agreed that 10 percent of the EU’s transport fuels should come from crop-based biofuels by 2020. Nine months later the U.S. passed a law that would require American fuel producers to use 36 billion gallons of biofuel a year by 2022 — a ﬁvefold increase from current levels. The effect of the new rules has been profound. As a result of the growing demand for corn, sugarcane and other crops used to make ethanol, as well as increased grain consumption by rapidly industrializing countries like China and India, the prices of many soft commodities have doubled in the past year and are trading at levels last seen during the 1970s. The opportunity is not lost on hedge fund managers. Ospraie Management founder Dwight Anderson, for one, has allocated nearly one ﬁfth of his ﬂagship fund to agricultural commodities and is developing a new fund that will invest directly in farmland, according to investors. But as Staff Writer Imogen Rose-Smith points out in the accompanying story, “There Could Be (More) Blood” (page 28), commodities investing isn’t easy. Many hedge funds have struggled to make money in the rough-andtumble energy markets, even as the price of crude oil has soared. Some things, it seems, don’t change. MICHAEL PELTZ EXECUTIVE EDITOR mpeltz@iimagazine.com FEBRUARY 2008 • INSTITUTIONAL INVESTOR’S ALPHA • 00 FEBRUARY 2008 • INSTITUTIONAL INVESTOR’S ALPHA • 3

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - February 2008

Institutional Investor's Alpha Magazine - February 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Alternative Perspective The Good Guys: A Simple Plan Cover Story: Energy and Commodities: Fueling Opportunity Regulation: Energy Trading: The Brawl on the Hill Interview: Master of Values Regulation: Hedge Fund Registration: Way Out West Research Center: Top Hedge Fund Analysts Alpha Bytes: Rocket Man Unhedged: Commentary: Structured for Success

Institutional Investor's Alpha Magazine - February 2008

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