This month we celebrate our first anniversary, and what a
year it has been. The recovery of hedge funds-and the entire
financial system-was so swift it could make your head swim.
But just as suddenly the whole world seems about to turn
upside down again. For over a year, most hedge funds have
arguing that inflation is the biggest worry in the markets,
but now the prospect of deflation is a more unsettling concern.
Markets have been roiled by this sea change, leading a few
prominent hedge fund managers, like the legendary Stan
Druckenmiller, to call it quits.
That's not the case for the subject of our cover story, Paul
Our profile of Jones and his firm's return to its macro
roots is a window into the rethinking that's going on among the
hedge fund elite. Over the past year we have witnessed huge
changes in the world of hedge funds. Jones, for one, is
becoming more conservative, and that just might be the best
stance in this uncertain environment. Moreover, Jones is
promising not to retire for at least five more years. One has
to applaud him for hanging in there.
As our strategy piece notes, gold remains the trade du jour.
Just think how it has edged out the big strategy ideas of the
pre-2008 world. Private equity and portable alpha are just two
of what we call the "dumbest ideas of the boom" in our In Depth
think piece this month.
During the past 12 months, hedge funds' relations with
investors have also altered substantially, though perhaps not
as much as many had expected-or at least hoped. This month our
second annual Hedge Fund Report Card gives a sense of who's up,
who's down-and what means the most to investors today. It's an
fascinating contrast, and we look forward to continuing this
annual snapshot in the years ahead.
Wrapping up a whirlwind first year, this summer AR received
two gold national ASBPE awards-for New Publication Editorial
Excellence and New Publication Design. Having published only
four issues of the magazine in 2009, we managed to nab five
awards, which are sponsored by the American Society of Business
Individual awards were given to senior writer Britt Erica
Tunick for her November 2009 cover story on Harbinger Capital
Management, "Falcone's Fall to Earth," while art director
Nathan Sinclair and his team won the national silver award for
Overall Photography/Illustrations. AR's December 2009 cover,
"The Goldman Brand Demystified," won Sinclair the regional
bronze award for Computer-Generated Cover Design.
These awards confirm that with one year under our belts,
we're on the right track. We are committed to our mission of
bringing transparency and accountability to the world of hedge
funds-offering engaging, insightful and entertaining journalism
in the process.
A special thank you to our readers for making it all