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Macro trading peaked a bit over 40 percent in 1998 for Kingdon; by year-end 1999 it was less than 5 percent. For Cooperman, due to his 1998 Russian experience, macro now has a defined risk limit of 5 percent of capital. Only liquid markets are allowed.

TECHNOLOGY ALLOCATION

Managers emphasize technology differently in their portfolios. Cooperman has had very little exposure to technology, admitting it has been a weak spot. However, he hired a technology analyst in 2000 to cover the area.

At the other extreme is Rajaratnam, whose specialization is technology and who has an office in Santa Clara, California. Griffin, with an office in San Francisco, also allocates considerably to technology. Through mergers and acquisitions, convertibles, and long/short equity positions, Citadel is significantly invested in the New Economy. Technology represents anywhere between a 5 percent and a 50 percent allocation of the portfolio.

Most of the other managers fall in between the two extremes on the continuum. Ainslie approaches technology like any other sector in the portfolio—the maximum allocation it can get is 10 percent. Kingdon's allocation varies based on valuation, as well as fundamental and technical factors, but usually ranges from 10 to 45 percent. At the time of the interviews, Kovner's and Cumberland's allocations to technology were each about 17 percent.

PRIVATE EQUITY

The managers approach private equity in different ways. (Private equity is the frequently illiquid market for closely held, usually small companies, often done under an exemption from the laws and regulations covering the transfer of publicly traded securities.) Some of the managers include private equity as a small percentage in their own funds. Kingdon has allocated to private equity for the past six years though the allocation is less than 5 percent of the assets. He says it provides him with an early window on developing technologies and sometimes offers outstanding returns. Wilcox says Cumberland's allocation to private equity is less than 5 percent. Singer views himself as doing the same as private