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hedges with short sales, indexes, options, volatility positions, volatility swaps, and derivatives.

TRADES TAKEN

Some managers look for a return objective. For example, when buying a stock, Kingdon's goal is at least a 30 percent gross return. Tepper usually looks for double the return on small caps and perhaps a 50 percent return on larger caps.

Others look for a certain risk per trade. The risk per trade Griffin looks for varies by strategy. For example, the risk taken on a fixed income arbitrage trade is much smaller than that of a risk arbitrage trade. Stark focuses on risk-adjusted returns but adjusts for portfolio considerations. He wants strategic and geographic diversification. Och also focuses on risk-adjusted returns. He avoids positions with explicit/implicit correlation to the stock market. He says the firm often focuses on more unusual and complex securities where hedging and analytical capabilities create a competitive advantage.

Both Cumberland and Cooperman, value investors, usually like to get $1 of value for 50 to 60 cents. Rajaratnam takes those trades where he feels Wall Street analysts haven't done the correct analysis and in effect arbitrages the research. Rajaratnam also describes Galleon as a thematic investor. Five to six themes are identified, and trades are placed based on those themes.

NUMBER OF PEOPLE

Several of the organizations have between 40 and 85 employees. The exceptions were Kovner's Caxton with 160 to 170 people, Sussman's Paloma with over 200, and Griffin's Citadel, which has over 350. On the smaller end were Wilcox's Cumberland, Tepper's Appaloosa, and Rajaratnam's Galleon at 22, 25, and 35 people respectively.

NUMBER/GEOGRAPHIC REPRESENTATION OF INVESTORS

The number of investors ranges from a low of 100 to 150 for Cooperman to as many as 700-plus for Ainslie.

The geographic client breakdown is also interesting; the percentage