(Background info on SAC and other Hedge Funds)

The 25 Most Intriguing Hedge Funds
Hedge Fund Reader
January 24, 2007

George Bush would have had a better chance of actually finding some ?weapons of mass destruction?, albeit financial ones, if he had only known where to look ? not in Iraq, but inside the hedge fund industry. No, this is not my flight of fancy; I?m only repeating Warren Buffet?s succinct summation of the $1.34 trillion business that?s got the financial world in a tizzy. Where else would you find pay packets so obscenely high that a secretary can steal more than ?4.5 million from under the noses of her three bosses (Partner Managing Directors in a hedge fund) before they even notice that the money is missing? Or hear one manager refer to the secretive nature of another as ?the biggest elephant trying to hide unsuccessfully in a jungle?? Secrecy

There?s no doubt that hedge funds are part of an exciting and beguiling realm that thrives on secrecy and mystery, even as it draws and lures investors with the compulsive force of quicksand. The head honchos of these investment vehicles may be famous for playing their cards close to their chests, but we?re laying down what we know about them, face up on the table. So fasten your seatbelts folks, and let us take you on a whirlwind tour around 25 of the most intriguing hedge fund players in the game today.

1. SAC Capital Partners: Secrecy may be Steve Cohen?s middle name but that didn?t stop his hedge fund from being embroiled in controversy over the Fairfax Financial Holdings affair. The sex, lies and financial fraud scandal saw SAC Capital being accused of driving down the Canadian insurer?s share value, and slapped with a $6 billion lawsuit in the process. Started in 1992 with just $25 million, the group worth $12 billion now is minting money, if its alleged gross returns are to be believed ? 40 percent before fees every year between 1996 and 2001. And if you?re thinking of joining the SAC bandwagon tempted by the 50 percent the fund retains, you?re out of luck ? it?s closed to new investors. The ?new prince of Wall Street? and the ?hedge fund king? are sobriquets that lie lightly on Cohen?s shoulders ? all he?s interested in is ruling his kingdom with an iron (secretive) fist.

2. Goldman Sachs Asset Management Group: It projects a conflicting image - Alpha Magazine ranks Goldman Sachs as the world?s largest hedge fund with assets totaling $720 billion, but the firm?s Manhattan headquarters does not even sport a sign to advertise its presence. The company is loaded with talent and money, but the secrecy is so high that one employee often does not know what his colleague is making. ?The Apprentice? and Donald Trump fans will remember Kwame Jackson as the ?ambitious chap? who threw up his cushy job at Goldman (he was denied a leave of absence citing ?reputational risk?) for a chance to be Trump?s apprentice. Pity he got ?fired? at the final hurdle! But that?s Goldman Sachs for you ? secretive to the point of ?shunning those who seek the spotlight.?

For more:
http://www.hedgefundreader.com/2007/01/the_25_most_int.html

TWO IN THE SAC
FEDS PROBING HEDGE FUND HORMONE CHARGES

By PAUL THARP and JANA WINTER -- New York Post

October 12, 2007 -- The dirty little scandal at Wall Street's richest hedge fund apparently isn't going away - feds are now investigating allegations that a trader was forced to gulp female hormones to do his job better.

According to court papers filed yesterday, the federal Equal Employment Opportunity Commission has a case underway to get to the bottom of tawdry accusations rattling powerful hedge fund SAC Capital, run by billionaire Steve Cohen.

The scandal erupted publicly Wednesday after a trader there claimed in a Manhattan Supreme Court lawsuit that his boss forced him to take female hormones - and also to wear articles of women's clothing at work - all of which eventually led to an alleged sexual relationship between the men, one of whom is married.

The bizarre behavior was ordered by the boss, it was alleged, to eliminate the trader's aggressive male attitude so he could become a more obedient and detail-oriented player in the $2 trillion hedge fund world.

Now new details have surfaced about the pair and how they climbed to the top.

The trader, Andrew Tong, 37, had studied for his doctorate in computer science at Columbia University, and his boss, Ping Jiang, 41, also was a computer brainiac who pioneered the use of computer-run "macro trading," which hedge funds wield to move global markets in just seconds.

They met nine years ago as young traders at Lehman Brothers, and moved on to other top firms over the years, all the while remaining friendly and occasionally socializing. They reunited a year ago at SAC.

Tong, who was fired from SAC after his allegations were filed, remained in seclusion with his wife in their swank condo tower in Newport Center in Jersey City.

Jiang still runs SAC's computer trading at its Madison Avenue offices where he supervises a half-dozen others. Jiang is said to be the second-most successful producer and earns as much as $150 million a year.

Those who know Jiang say they're stunned.

"He was a very bright, quiet loner," said a former Lehman executive now at a rival hedge fund, describing him as "an aggressive trader who liked to take big positions." Another ex-Lehman exec who worked closely with Jiang said he had "never seen any [behavior] from Jiang that could possibly be related" to the claims.

"I think Jiang is a great trader and a bright guy whose strategy might have rubbed [Tong] the wrong way, but the most successful people in hedge funds are intense and single-minded."

Colleagues milling outside SAC's sprawling headquarters campus in Stamford Conn., were puzzled by the tale.

One said it didn't make sense to hand out female hormones to enhance skills. "If taking female hormones actually helped you do your job, they would simply hire women here," the employee said. "But they don't. They don't think women are aggressive enough."

They said SAC brass were furious about the allegations, first reported on CNBC.

"The big bosses were livid. They went desk to desk to try and find out who leaked it. It was like a witch hunt," said one employee.

Lawyers for SAC and Jiang called the allegations "salacious and false," while Tong's lawyer say the allegations are "neither salacious nor false."

paul.tharp@nypost.com