Cumberland's survival guide

Wed Oct 1, 2003



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...

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