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