Top 10 hedge fund stories of 2010
By Lawrence Delevingne
Tue Dec 21, 2010
Managers made plenty of news, but often for the wrong reasons.
|Harbinger's Phil Falcone
Hedge funds continued to capture the public imagination in
2010, although often not in ways money managers hoped. The
industry appeared in the press most when it confirmed a
sinister-and perhaps unfair-view of insiders making insiders
more money: hedge funds dodged higher taxes (carried interest),
won profits on illegal information (insider trading) and made
money from products designed to fail (those junky
collateralized debt obligations).
The year also highlighted one of the toughest questions in the
industry: what to do when a firm's legendary founder wants to
quit the business. When Duquesne founder Stanley Druckenmiller
retired, he closed the doors on one of the best-performing and
longest-running hedge funds in the industry. But 2010 also
introduced such potential stars as Todd Combs, Berkshire
Hathaway's new money manager, and $5 billion Duquesne spin-off
Point State Capital.
See all of AR's Top 10 Hedge Fund Stories of 2010