A "Lego paradigm" for investing


In his forthcoming book, Mitch Julis of Canyon Partners rethinks money management
By Sarah Wood

When evidence of massive accounting fraud at Enron and WorldCom surfaced several years ago, many hedge funds were caught off guard. They either missed out on the historic shorting opportunities or, worse, lost money after buying into the companies' deceptions.

Some managers responded by licking their wounds and moving on. Mitch Julis, co-founder with Josh Friedman of Canyon Partners, a $13 billion value-oriented, multistrategy operation, decided to go back to school - and write a book about what he'd learned.