The Alpha Hedge Fund Hall of Fame

September 03, 2014  

The four newest members of the Hedge Fund Hall of Fame have reshaped the industry with their innovative thinking.

2014 Inductees
 

The Outsiders, an investment book written by Housatonic Partners founder William Thorndike Jr., chronicles the exploits of eight "unconventional" CEOs, including Warren Buffett and John Malone, who have "enjoyed eye-popping, credulity-straining performance over very long tenures." Their success, Thorndike explains, comes from, among other things, independent thinking and skill at capital allocation.

The four new members of the Alpha Hedge Fund Hall of Fame have long excelled at both. Eighty-one-year-old Richard Elden, the elder statesman of the group, created the first U.S. fund of hedge funds with $500,000 in 1971. Today the firm, Chicago-based Grosvenor Capital Management, oversees more than $46 billion, including $20 billion in private market investments.

Longtime M&A banker J. Tomilson Hill is a relative newcomer to the fund-of-hedge-funds business, having taken over day-to-day responsibility for Blackstone Alternative Asset Management in 2000, when the group was overseeing $1.2 billion. By focusing on providing investment solutions rather than selling one-size-fits-all products, Hill has helped transform the industry at the same time that BAAM has become the world's largest allocator to hedge funds, with $62 billion in discretionary assets. "One of my goals was to actually educate, proselytize and try to get these big pools of money to understand the benefits and merits of investing in alternatives," he says.

David Harding has always been a free thinker, going back to the early '80s, when he sported pink hair as an undergraduate at the University of Cambridge. As founder of two successful CTA firms — Adam, Harding & Lueck and Winton Capital Management — he has brought credibility to futures trading and proved that quantitative methods can be applied to any market.

Richard Perry is arguably the best dressed among this year's Hall of Fame inductees. Perry, who left a partnership at Goldman Sachs when he was 30 to start his eponymous hedge fund firm (which owns fashion mecca Barneys New York), is the consummate arbitrageur, almost always correctly calculating the odds and delivering outsize returns for his investors.

Previous Hedge Fund Hall of Fame Inductees
 
2013 Inductees
2008 Inductees


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