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tional allocations are coming into the hedge fund community since the stock market will not be able to return 15 percent per year over the long term on a low-volatility basis. He feels the indexes are over-owned and overpriced.

As a manager for over 23 years, he respects the select number of managers who can consistently make money for the long term in different environments—periods of inflation or no inflation, low interest rates or high interest rates, trade deficit, dollar collapse. In contrast, some of the new-generation managers (in 1999 and early 2000) were engaged in bull market stock-trading strategies. Gradually the investor community will realize they are not getting their money's worth. The ability to chase stocks in a bull market may be less attractive as time goes on. "In each whipsaw environment, a few managers will be lost. Few managers can create businesses with finesse and risk control combined." Singer also acknowledges the importance of investing as well as business decision making. Both are needed. It is an art, not a science.