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Throughout the years, several of the managers have taken steps to have controlled growth. This has meant entering new strategies and taking new initiatives. Increasing capacity has been the issue for Griffin, Kovner, Och, Stark, and Sussman. Kovner observed that for an organization to survive, it must change with the opportunities available. Griffin acknowledged that if you're not aware of product development, you can't survive in the long term.

In their quest to have controlled growth, some of the managers conduct studies to quantify and measure the impact of assets on performance. For example, Ainslie compares Maverick's performance each month against pro forma performance as if no trades had been executed each month. Each day they look at trade executions against the closing price and the volume-weighted average price. JWH similarly conducts slippage studies to examine the impact of position-taking on markets he is participating in.

PERCENTAGE OF THEIR OWN MONEY

The managers' personal assets in their funds are significant. This means they have strong conviction in their own talent. It also means their own net worth is highly correlated to the performance of their funds. Thus they have a huge incentive to do well. While they describe their participation differently, the result is generally the same.

Kingdon says his entire financial net worth is in his funds. Stark estimates about 95 percent of his net worth is in the funds, while Och estimates his participation at about 80 percent of his net worth.

Singer, his family, and the principals are the largest investors in his fund, while Griffin says he and Citadel's other professionals are the second largest investor in the fund.

Caxton's principals' assets are currently under 30 percent of the fund. Cooperman said 12 percent of the capital in his funds are the general partners'. The principals' assets at Paloma, Appaloosa, and Cumberland (including retired principals' assets) are about 10 percent of the respective firms' capital. Stark and his staff represent 8.3 percent of the total assets under management. Ainslie estimated that Maverick principals and related entities have over $400 million in the Maverick funds, about 7 percent of the total assets. The partners and employees of