Now for some good news from the hedge fund industry. The
newspapers may be full of stories about bad hedge funds
colluding with greedy mutual funds to steal money from 'Mom and
Pop' but what about Cumberland Associates seeing assets rise to
over $1.2 billion once again? Not a peep.
On the face of it, a fund breaking through the billion
dollar barrier doesn't sound like big news compared to the high
profile antics of Eliot Spitzer. But, arguably, for its
long-term impact on the industry, the Cumberland story is far
more significant because it shows how hedge funds can turn
themselves into sustainable businesses.
What makes the Cumberland story so extraordinary is that the
company was founded in 1970 and since then has weathered the
departure of two groups of partners. In other words, it has
shown that a hedge fund need not have the longevity of a...