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

OCTOBER 2008 Institutional Investor’s Alpha Contents www.alphamagazine.com 39 40 44 50 COVER STORY INDUSTRY UNDER SIEGE THE NEW HEDGE FUND ECONOMICS With most funds likely to ﬁnish 2008 well in the red, many managers face a world without performance fees. BY STEPHEN TAUB GOOD-BYE, EASY MONEY The credit crisis is hitting hedge funds on two fronts — their investments and their ﬁnancing. BY IMOGEN ROSE-SMITH CAGING THE SHORTS Short-sellers may not have caused the global banking crisis, but regulators are sure cracking down on them. BY DAVE SIMONS JEFF COOPER 18 Manhattan miracle: Kansas State enjoys the fruits of hedge fund investing. 3 5 18 22 LETTER FROM THE EDITOR LONGS & SHORTS Cash matters; Reality bites; Steel away; Sun down; and more. PENSION CORNER Process of Evolution Kansas State marches to the hedge fund drum. BY KATIE GILBERT THE GOOD GUYS Israel’s Champion Michael Steinhardt gets back to his roots. BY DANIELLE BEURTEAUX LEVI BROWN 24 INTERVIEW Fast Lessons for Hard Times André Perold on the global ﬁnancial crisis. BY FRANCES DENMARK 50 Caught short: Managers are learning it’s hard to hedge without short-selling. 54 72 80 STRATEGIES Bottom Fishing Finding deals in the downtrodden mortgage market. BY NEIL O’HARA PROFILE Cult of Personalities Permal focuses on ﬁnding the best people and funds. BY PHIL DAVIS RESEARCH CENTER: ALPHA AWARDS Eye of the Storm Our fourth annual ranking of the top hedge fund service providers. BY FRANCES DENMARK, KATIE GILBERT AND IMOGEN ROSE-SMITH JONATHAN WORTH 93 ALPHA BYTES Funneling the Chatter New tools to manage the vast ﬂow of market news. BY KATIE GILBERT 72 Character factor: Picking managers is about more than just performance. 96 UNHEDGED: COMMENTARY Attention, Hedge Fund Shoppers BY MICHAEL SPELLACY Cover by Nathan Sinclair http://www.alphamagazine.com

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

Institutional Investor's Alpha Magazine - October 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Process of Evolution The Good Guys: Israel's Champion Interview: Fast Lessons for Hard Times Cover Story: Industry Under Siege The New Hedge Fund Economics Good-Bye, Easy Money Caging the Shorts Strategies: Bottom Fishing Profile: Cult of Personalities Research Center: Alpha Awards: Eye of the Storm Alpha Bytes: Funneling the Chatter Unhedged: Commentary: Attention, Hedge Fund Shoppers

Institutional Investor's Alpha Magazine - October 2008

Institutional Investor's Alpha Magazine - October 2008 - Institutional Investor's Alpha Magazine - October 2008 (Page Cover1) Institutional Investor's Alpha Magazine - October 2008 - Institutional Investor's Alpha Magazine - October 2008 (Page Cover2) Institutional Investor's Alpha Magazine - October 2008 - Contents (Page 1) Institutional Investor's Alpha Magazine - October 2008 - Contents (Page 2) Institutional Investor's Alpha Magazine - October 2008 - Letter from the Editor (Page 3) Institutional Investor's Alpha Magazine - October 2008 - Letter from the Editor (Page 4) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 5) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 6) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 7) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 8) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 9) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 10) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 11) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 12) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 13) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 14) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 15) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 16) Institutional Investor's Alpha Magazine - October 2008 - Longs & Shorts (Page 17) Institutional Investor's Alpha Magazine - October 2008 - Pension Corner: Process of Evolution (Page 18) Institutional Investor's Alpha Magazine - October 2008 - Pension Corner: Process of Evolution (Page 19) Institutional Investor's Alpha Magazine - October 2008 - Pension Corner: Process of Evolution (Page 20) Institutional Investor's Alpha Magazine - October 2008 - Pension Corner: Process of Evolution (Page 21) Institutional Investor's Alpha Magazine - October 2008 - The Good Guys: Israel's Champion (Page 22) Institutional Investor's Alpha Magazine - October 2008 - The Good Guys: Israel's Champion (Page 23) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 24) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 25) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 26) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 27) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 28) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 29) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 30) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 31) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 32) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 33) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 34) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 35) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 36) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 37) Institutional Investor's Alpha Magazine - October 2008 - Interview: Fast Lessons for Hard Times (Page 38) Institutional Investor's Alpha Magazine - October 2008 - Cover Story: Industry Under Siege (Page 39) Institutional Investor's Alpha Magazine - October 2008 - The New Hedge Fund Economics (Page 40) Institutional Investor's Alpha Magazine - October 2008 - The New Hedge Fund Economics (Page 41) Institutional Investor's Alpha Magazine - October 2008 - The New Hedge Fund Economics (Page 42) Institutional Investor's Alpha Magazine - October 2008 - The New Hedge Fund Economics (Page 43) Institutional Investor's Alpha Magazine - October 2008 - Good-Bye, Easy Money (Page 44) Institutional Investor's Alpha Magazine - October 2008 - Good-Bye, Easy Money (Page 45) Institutional Investor's Alpha Magazine - October 2008 - Good-Bye, Easy Money (Page 46) Institutional Investor's Alpha Magazine - October 2008 - Good-Bye, Easy Money (Page 47) Institutional Investor's Alpha Magazine - October 2008 - Good-Bye, Easy Money (Page 48) Institutional Investor's Alpha Magazine - October 2008 - Good-Bye, Easy Money (Page 49) Institutional Investor's Alpha Magazine - October 2008 - Caging the Shorts (Page 50) Institutional Investor's Alpha Magazine - October 2008 - Caging the Shorts (Page 51) Institutional Investor's Alpha Magazine - October 2008 - Caging the Shorts (Page 52) Institutional Investor's Alpha Magazine - October 2008 - Caging the Shorts (Page 53) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 54) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 55) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 56) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 57) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 58) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 59) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 60) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 61) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 62) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 63) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 64) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 65) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 66) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 67) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 68) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 69) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 70) Institutional Investor's Alpha Magazine - October 2008 - Strategies: Bottom Fishing (Page 71) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 72) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 73) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 74) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 75) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 76) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 77) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 78) Institutional Investor's Alpha Magazine - October 2008 - Profile: Cult of Personalities (Page 79) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 80) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 81) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 82) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 83) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 84) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 85) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 86) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 87) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 88) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 89) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 90) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 91) Institutional Investor's Alpha Magazine - October 2008 - Research Center: Alpha Awards: Eye of the Storm (Page 92) Institutional Investor's Alpha Magazine - October 2008 - Alpha Bytes: Funneling the Chatter (Page 93) Institutional Investor's Alpha Magazine - October 2008 - Alpha Bytes: Funneling the Chatter (Page 94) Institutional Investor's Alpha Magazine - October 2008 - Alpha Bytes: Funneling the Chatter (Page 95) Institutional Investor's Alpha Magazine - October 2008 - Unhedged: Commentary: Attention, Hedge Fund Shoppers (Page 96) Institutional Investor's Alpha Magazine - October 2008 - Unhedged: Commentary: Attention, Hedge Fund Shoppers (Page Cover3) Institutional Investor's Alpha Magazine - October 2008 - Unhedged: Commentary: Attention, Hedge Fund Shoppers (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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