Hedge Funds

Moderate returns and partner squabbles drive shutdowns


But fund failures are expected to increase after a benign year in 2004

Al Vinjamur seemed to have done everything right. He spent 11 years as a statistical arbitrageur at Steve Cohen's SAC Capital Management, one of the most influential names in the hedge fund industry. He took his time assembling an investment team and developing fresh trading programs for his new firm, Lotus Partners, and made a commitment to limit his start-up capital to about $200 million.

But, within days of launch, his carefully laid plans started to unravel. For starters, Vinjamur was launching