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lyst should be able to produce at least six core-type ideas and 15 to 20 trading ideas.

Analysts must have an intensity that leads them to be fully informed about their positions and ahead of the crowd. They must have pride of ownership, a sense of loyalty, and care for Omega clients. Commitment and loyalty run through Cooperman's life. He expects the same of his staff. "You've got to be committed to this business or get out."

With these factors in mind, the culture can best be described as intense, demanding, and research-driven.

Cooperman admits that he is not technology oriented—something he shares with Warren Buffett—and that has been a blind spot. He hired a technology analyst in 2000.

Decision making is centralized. Cooperman has the final word in all investment areas. If he has people whom he trusts, they are given more discretion. For example, Cooperman hired Steven Einhorn in May 1999 for the second time. Einhorn is vice chairman of Omega. The two had worked together at Goldman Sachs for 12 years, where Cooperman had hired him as a portfolio analyst. Cooperman says the hiring of Einhorn has given him more flexibility to do things he likes, such as visiting more companies.

Cooperman, while acknowledging his disappointment over high staff turnover, feels there is a broad-based capability in the firm. "There are a number of young people coming up."

The investment policy committee includes Cooperman and Einhorn as cochairs; Raj Gupta, who is head of the macro group; and a senior equity portfolio manager who changes from time to time. "We discuss macro trends, try to identify straw hats in the winter (since most people buy straw hats in the summer), out-of-favor asset classes where the return/risk ratio is appealing." The committee meets on a weekly basis. Portfolio decisions and optimization are fundamental-based.

The total Omega portfolio typically consists of 90 to 100 stocks, of which one-third make up 50 to 65 percent of the portfolio and the other two-thirds the balance. The average company typically makes up 2 to 3 percent of the assets in the portfolio.

Cooperman likes to visit companies and go eyeball-to-eyeball with management. Accordingly, he sees their New York City office as an advantage to their investing style. "New York is the mecca, the financial center." Many companies visit New York regularly, but when nec-