12 Raj Rajaratnam, Galleon Group

This $5 billion-plus thematic investor focuses on technology and health care. Without using leverage, he has generated a track record without any down years. Primarily U.S.-focused, he puts as much emphasis on trading as on research.

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13 Paul Singer, Elliott Associates

Singer focuses on process-driven activities such as arbitrage and distressed securities. He is known for the extraordinary amount of work and research that goes into his investing. With offices in New York and London, his track record goes back to 1977.

211

14 Brian Stark, Stark Investments

This Wisconsin-based manager takes a global approach to the markets and finds more inefficiencies outside the United States to take advantage of. An arbitrage specialist, the manager focuses on convertible arbitrage, risk arbitrage, and private placements.

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15 S. Donald Sussman, Paloma Partners

This manager has been farming out allocations to market neutral managers since 1981. He usually has an exclusive relationship with the managers and is usually their sole backer. Thus he has complete transparency on each manager's transactions. The structure can best be described as an internal multistrategy investment pool. Diversification of strategy and number of managers is key; allocations are currently given to 22 managers.

239

16 David Tepper, Appaloosa Management

Value-oriented and opportunistic, this manager's core competency is event-driven strategies, particularly high-yield bonds and distressed securities. The ultimate trader, Tepper is currently reducing assets in an effort to generate higher performance for investors.

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