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zation, a risk and/or capital allocator. Many times an investment committee exists. Interestingly, some of the managers selectively make allocations to other hedge fund managers.

Most are located in New York, and if a second office exists, it is usually in London. Their minimum investment is typically higher than that of the average hedge fund manager, which is usually about $500,000. In many cases, the lock-up of assets is longer than a year.

Many look for challenges during their free time as well. Winning at sports or mastering a technique were common themes. Also mentioned were philanthropy, public issue reform, and, to a lesser degree, music and politics.

INITIAL SPARK

Several of the managers were first introduced to investing and stocks in their teenage years. Tepper says he became involved with investing at about 10 to 11 years old. Kingdon and Cooperman both received stock shares as bar mitzvah presents. Ainslie joined an investment club in high school. Stark became involved with warrant and risk arbitrage while working one summer during high school. (Risk arbitrage occurs when a manager buys a stock in a company being acquired and sells stock in its acquirer.) Griffin was motivated by an options profit he made at 17. When he realized that the market maker's profit was more than his own, he became motivated to understand options pricing strategy. Sussman got his first taste of investing at a summer job during college at a brokerage firm.

IVY LEAGUE/MBA BACKGROUNDS

Of the 13 managers interviewed, five went to Harvard University as either an undergraduate (Kovner, Griffin) or a graduate student (Singer and Stark for law and Kingdon for business).

Two went to the Wharton School of Finance and Commerce at the University of Pennsylvania—Rajaratnam (MBA) and Och (undergraduate).

In total, six received MBAs. Ainslie went to the University of Virginia and then on to graduate school at the University of North Carolina. Cooperman went to Hunter College of the University of the City of