Institutional Investor's Alpha Magazine - April 2008 - (Page 45)

31 Greg Coffey GLG Partners $300 MILLION PHOTO BY PETER GREGOIRE Daniel Loeb shuttles between New York and London and is by far the better-traveled and more public partner, formerly managed global equities for Goldman Sachs International. The Belgian-born Lagrange, also 46, who lives in a mansion in Oxfordshire, heads up European strategies and seems pretty good at it: The $3.9 billion GLG European Long Short Fund was up 17.5 percent last year. GLG has had legal problems, though; in 2007 — without admitting wrongdoing — it paid $1 million to settle two investigations by the Securities and Exchange Commission into alleged illegal short-selling on several public offerings. 36 Greg Coffey, a chronically unsung hero at London-based GLG Partners, made his biggest gains last year betting against the U.S. dollar and subprime debt and loans, and going long in Asian equities. Since joining GLG in November 2003 from a George Soros–backed hedge fund, he has been the ﬁrm’s best-performing manager, overseeing the GLG Emerging Markets Fund. For 2007 the fund had a 50 percent return, double that of the average emerging-markets hedge fund, according to Chicago-based Hedge Fund Research. Coffey’s fund, which surged 60 percent in 2006 and 100 percent in each of the two previous years, is GLG’s biggest, with more than $5 billion under management. In total, Coffey, 36, manages more than $7 billion in GLG capital. 31 on housing stocks paid off in 2007. So did his long bets on large-cap stocks. Tepper recently pulled out of a $2.5 billion deal to rescue troubled auto-parts maker Delphi Corp. His ﬁrm, Chatham, New Jersey–based Appaloosa Management, has $6.8 billion in assets under management. Carl Icahn Icahn Partners $300 MILLION 30 Louis Bacon Moore Capital Management $315 MILLION 27 David Tepper Appaloosa Management $350 MILLION For David Tepper, 2007 was a bit of a disappointment. Following a roughly 26 percent return in both 2005 and 2006, Tepper’s two hedge funds — Appaloosa Investment I and Palomino — were each up just 8.9 percent last year. Although the 50-year-old junk bond specialist failed to capitalize on the subprime meltdown, his short bets Louis Bacon worked his macro and ﬁxed-income magic to guide his four major funds at New York–based Moore Capital Management to returns that ranged from 14 to 22 percent, enabling the 51-year-old manager to almost double his earnings over 2006. Bacon, who was managing $15 billion at the end of 2007 and who is known for carefully guarding his privacy, attracted attention in late 2007 when he shelled out an estimated $175 million for the Forbes family’s ranch in Colorado. Not exactly 40 acres and a mule, the property includes three 14,000-foot-tall mountains and a herd of elk. Carl Icahn is human after all. Last year the billionaire corporate raider and activist hedge fund manager had trouble getting his way all of the time. Most notably, he failed last May to win a seat on the board of Motorola. The value of his sizable stake in the company fell more than 21 percent, part of the reason his hedge fund, New York– based Icahn Partners, with $8 billion in assets, climbed just 6 percent on the year. But Icahn, 72, prevailed. Just this month Motorola management agreed to add two Icahn allies to the board and to split off its handset business. 31 Paul Tudor Jones II Tudor Investment Corp. $300 MILLION In posting his worst-ever investment performance last year, Paul Tudor Jones II didn’t exactly go broke. His ﬂagship Tudor BVI Global Fund netted a 7 percent return after a 4 percent management fee and a 23 percent performance fee — its ﬁrst single-digit performance in seven years. Jones, 53, was hurt by losses in his equity portfolio, which generally accounts for APRIL 2008 • INSTITUTIONAL INVESTOR’S ALPHA • 45

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

Institutional Investor's Alpha Magazine - April 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Here to Eternity The Good Guys: Voice of Hope Cover Story: The Kings of Cash Where the Money Is Into the Light Interview: Proceeding with Caution Strategies: A Convenient Truth Alpha Bytes: Village Voice Unhedged: Commentary: No Time for Complacency

Institutional Investor's Alpha Magazine - April 2008

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