Institutional Investor's Alpha Magazine - May 2008 - (Page 1)

May 2008 Institutional Investor’s Alpha Contents www.alphamagazine.com 24 COVER STORY Welcome to OZ Daniel Och is trying to turn Och-Ziff Capital Management into a global deal-making giant. Taking the ﬁrm public last fall was just the ﬁrst step. By Loch Adamson LETTER FROM THE EDITOR LONGS & SHORTS MACKENZIE STROH 3 5 18 Prudent speculator: Daniel Och has carefully constructed a $33.4 billion empire. Out of Coffey; Hedging in Havana; Larson’s second act; and more. PENSION CORNER Send in the Clones Swedish pension fund AP7 is turning to hedge fund replication strategies to avoid headline-grabbing losses. By Katie Gilbert 24 22 THE GOOD GUYS Outside the Box In their quest for a cure for cancer, the benefactors of a new $1 million prize reward innovative thinking. By Danielle Beurteaux 34 INTERVIEW The Tipping Point Deutsche Bank global credit trading co-head Boaz Weinstein. By Imogen Rose-Smith SIMON PEMBERTON 38 REGULATION When Sentinels Go Astray Look for the SEC to crack down on the rating agencies for their role in the credit crisis. By Darrell Delamaide The rating game: Triple-A won’t be easy to come by anymore. 38 42 STRATEGIES Taking Credit For distressed-debt investors, the opportunity for big proﬁts is only just beginning. By Neil O’Hara 49 56 HENRIK OLUND RESEARCH CENTER The Hedge Fund 100 Our annual ranking of the world’s biggest hedge funds. By Karl Cates BOOK EXCERPT Shoot the Messenger Fooling Some of the People All of the Time. ALPHA BYTES By David Einhorn 6 1 Discriminating investors: Savvy managers ﬁnd value in the distressed-debt market. VaR Enough? Knowing the limitations of Value at Risk. By Irwin Speizer 42 64 UNHEDGED: COMMENTARY Not Your Father’s Activist By Kenneth Squire Cover photo by Mackenzie Stroh for Alpha http://www.alphamagazine.com

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

Institutional Investor's Alpha Magazine - May 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Send in the Clones The Good Guys: Outside the Box Cover Story: Welcome to Oz Interview: The Tipping Point Regulation: When Sentinels Go Astray Strategies: Taking Credit Research Center: The Hedge Fund 100 Book Excerpt: Shoot the Messenger Alpha Bytes: VaR Enough? Unhedged: Commentary: Not Your Father's Activist

Institutional Investor's Alpha Magazine - May 2008

Institutional Investor's Alpha Magazine - May 2008 - Institutional Investor's Alpha Magazine - May 2008 (Page Cover1) Institutional Investor's Alpha Magazine - May 2008 - Institutional Investor's Alpha Magazine - May 2008 (Page Cover2) Institutional Investor's Alpha Magazine - May 2008 - Contents (Page 1) Institutional Investor's Alpha Magazine - May 2008 - Contents (Page 2) Institutional Investor's Alpha Magazine - May 2008 - Letter from the Editor (Page 3) Institutional Investor's Alpha Magazine - May 2008 - Letter from the Editor (Page 4) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 5) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 6) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 7) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 8) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 9) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 10) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 11) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 12) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 13) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 14) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 15) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 16) Institutional Investor's Alpha Magazine - May 2008 - Longs & Shorts (Page 17) Institutional Investor's Alpha Magazine - May 2008 - Pension Corner: Send in the Clones (Page 18) Institutional Investor's Alpha Magazine - May 2008 - Pension Corner: Send in the Clones (Page 19) Institutional Investor's Alpha Magazine - May 2008 - Pension Corner: Send in the Clones (Page 20) Institutional Investor's Alpha Magazine - May 2008 - Pension Corner: Send in the Clones (Page 21) Institutional Investor's Alpha Magazine - May 2008 - The Good Guys: Outside the Box (Page 22) Institutional Investor's Alpha Magazine - May 2008 - The Good Guys: Outside the Box (Page 23) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 24) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 25) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 26) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 27) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 28) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 29) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 30) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 31) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 32) Institutional Investor's Alpha Magazine - May 2008 - Cover Story: Welcome to Oz (Page 33) Institutional Investor's Alpha Magazine - May 2008 - Interview: The Tipping Point (Page 34) Institutional Investor's Alpha Magazine - May 2008 - Interview: The Tipping Point (Page 35) Institutional Investor's Alpha Magazine - May 2008 - Interview: The Tipping Point (Page 36) Institutional Investor's Alpha Magazine - May 2008 - Interview: The Tipping Point (Page 37) Institutional Investor's Alpha Magazine - May 2008 - Regulation: When Sentinels Go Astray (Page 38) Institutional Investor's Alpha Magazine - May 2008 - Regulation: When Sentinels Go Astray (Page 39) Institutional Investor's Alpha Magazine - May 2008 - Regulation: When Sentinels Go Astray (Page 40) Institutional Investor's Alpha Magazine - May 2008 - Regulation: When Sentinels Go Astray (Page 41) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 42) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 43) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 44) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 45) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 46) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 47) Institutional Investor's Alpha Magazine - May 2008 - Strategies: Taking Credit (Page 48) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 49) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 50) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 51) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 52) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 53) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 54) Institutional Investor's Alpha Magazine - May 2008 - Research Center: The Hedge Fund 100 (Page 55) Institutional Investor's Alpha Magazine - May 2008 - Book Excerpt: Shoot the Messenger (Page 56) Institutional Investor's Alpha Magazine - May 2008 - Book Excerpt: Shoot the Messenger (Page 57) Institutional Investor's Alpha Magazine - May 2008 - Book Excerpt: Shoot the Messenger (Page 58) Institutional Investor's Alpha Magazine - May 2008 - Book Excerpt: Shoot the Messenger (Page 59) Institutional Investor's Alpha Magazine - May 2008 - Book Excerpt: Shoot the Messenger (Page 60) Institutional Investor's Alpha Magazine - May 2008 - Alpha Bytes: VaR Enough? (Page 61) Institutional Investor's Alpha Magazine - May 2008 - Alpha Bytes: VaR Enough? (Page 62) Institutional Investor's Alpha Magazine - May 2008 - Alpha Bytes: VaR Enough? (Page 63) Institutional Investor's Alpha Magazine - May 2008 - Unhedged: Commentary: Not Your Father's Activist (Page 64) Institutional Investor's Alpha Magazine - May 2008 - Unhedged: Commentary: Not Your Father's Activist (Page Cover3) Institutional Investor's Alpha Magazine - May 2008 - Unhedged: Commentary: Not Your Father's Activist (Page Cover4) http://www.nxtbook.com/nxtbooks/ii/ar_1564k_v2http://www.nxtbook.com/nxtbooks/ii/ar_1564khttp://www.nxtbook.com/nxtbooks/ii/ar_7894nhttp://www.nxtbook.com/nxtbooks/ii/ar_5689p_v2http://www.nxtbook.com/nxtbooks/ii/ar_5689phttp://www.nxtbook.com/nxtbooks/ii/alpha0709http://www.nxtbook.com/nxtbooks/ii/alpha0609http://www.nxtbook.com/nxtbooks/ii/alpha0509http://www.nxtbook.com/nxtbooks/ii/alpha0409http://www.nxtbook.com/nxtbooks/ii/alpha0309http://www.nxtbook.com/nxtbooks/ii/alpha0209http://www.nxtbook.com/nxtbooks/ii/alpha1208http://www.nxtbook.com/nxtbooks/ii/alpha1108http://www.nxtbook.com/nxtbooks/ii/alpha1008http://www.nxtbook.com/nxtbooks/ii/alpha0908http://www.nxtbook.com/nxtbooks/ii/alpha0708http://www.nxtbook.com/nxtbooks/ii/alpha0608http://www.nxtbook.com/nxtbooks/ii/alpha0508http://www.nxtbook.com/nxtbooks/ii/alpha0408http://www.nxtbook.com/nxtbooks/ii/alpha0308http://www.nxtbook.com/nxtbooks/ii/alpha0208http://www.nxtbook.com/nxtbooks/ii/alpha0108http://www.nxtbook.com/nxtbooks/ii/alpha1107http://www.nxtbook.com/nxtbooks/ii/alpha1007http://www.nxtbook.com/nxtbooks/ii/alpha0907http://www.nxtbook.com/nxtbooks/ii/alpha0707http://www.nxtbook.com/nxtbooks/ii/alpha0607http://www.nxtbook.com/nxtbooks/ii/alpha0507http://www.nxtbook.com/nxtbooks/ii/alpha0407http://www.nxtbookMEDIA.com

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