The well-known imbalance of power between hedge fund
managers and their investors may be heavily
tilted in favor of the former. But when managers are humbled
by the markets, the roles start to shift. Once returns go down,
investors quickly feel aggrieved, and, if they can, they vote
with their feet.
That's when the best managers, knowing they have to regain
their investors' trust, reach out. Larry Robbins, the subject
of this month's cover profile, did just that when Glenview
Partners' holdings started tumbling in the summer of 2002.
What happened next could serve as a valuable lesson for
managers who launched during last...