For all the swollen egos, high stakes and sky-scraping fees
that color the hedge fund world, it's really a pretty forgiving
place. Call it the land of second chances.
This tendency to forgive and forget is highlighted now with
the anticipated launch of a hedge fund by David Berkowitz, the
former partner of Bill Ackman in Gotham Partners. (Not to be
confused with David Berkowitz the serial killer, who is still
in prison and not getting a second chance.)
The details of Berkowitz's new venture are reported this
month on p. 6. Many in the industry will remember what happened
to his last one: After producing a streak of 40% investment
gains, Gotham began loading up on private equity, and its
returns fell into negative territory.
At the same time, the U.S. Securities and Exchange
Commission and the New York State Attorney General, at the
instigation of a company shorted...