Baby Boomer Hedge Fund Managers Getting Ready to Retire, Hand Over Reins

As the baby boom generation ages and gets ready to retire, hedge fund managers from that generation are grooming successors to take over once they leave, Bloomberg writes. Instead of just shutting down the fund like predecessors, hedge fund managers like Steven Cohen of SAC Capital Partners, Louis Bacon of Moore Capital Management, and Thomas Steyer of Farallon Capital Management have hand-picked heirs in place already. Earlier this year, Cohen picked four of his best to help manage the $2 bn he personally oversees. Bacon recruited four senior managers in the past 20 months, while Steyer named Andrew Spokes as his likely successor. Hedge funds are built on the reputations of their managers, so eliminating leadership uncertainty after the retirement of founders is necessary to reassure investors.