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Henry provides investors with a monthly report explaining what happened fundamentally in each of the major markets. Specific positions and details are not provided.

INSTITUTIONALIZATION OF THE FIRM

Henry has succeeded more than the other superstar hedge fund managers in institutionalizing his firm. Semiretired (i.e., not running day-to-day affairs) since 1986, he has a group of over 60 people working for him. Unlike most of the other hedge fund managers interviewed, he is not a fundamental trader. Perhaps it is his mechanical, long-term trend follower approach that allows him to be somewhat removed.

He admits never enjoying running a company, but he enjoys the vast majority of people who have been involved with the company.

The firm is structured by functional groups—trading, research, information technology, investment support, compliance, investor services and marketing, corporate finance, administration, and human resources.

For those activities that require cross-company expertise to enhance decision making, committees are used. The most important one is the investment policy committee, which Henry chairs. This senior-level advisory group is broadly responsible for evaluating and overseeing trading policies. Issues related to implementation of JWH's investment process and its application to markets, including research on new markets and strategies, liquidity, position size, capacity, and performance cycles. Besides Henry, Verne Sedlacek and Mark Rzepczynski are investment committee members. Sedlacek, who is president and chief operating officer, is also responsible for day-to-day management. He had been the executive vice president and chief financial officer at Harvard Management Corp. before he joined JWH in 1998. Rzepczynski is senior vice president of research and trading.

While all the factors relating to both individual and group performance are taken into account in determining the reward system, the primary driving factor is the performance of the firm.

Until 2000, there had been an office in Westport, Connecticut, where administration, compliance, and marketing were headquartered. The decision was made, partially because the Westport lease was up and also due to lackluster futures markets, to consolidate the office with the