The power balance shifts...a little


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