9-18-06 Charles Gradante on CNBC's Closing Bell with Maria Bartiromo

Charles Gradante is one of Wall Street's most sought after opinion leaders on matters of the stock market, the global economy, hedge fund strategy and asset allocation. He is the Co-Founder of Hennessee Group (www.HennesseeGroup.com) and he is shown on CNBC's "Closing Bell" program with Maria Bartiromo.

Noteworthy highlights from this particular interview include comments about:

- Steve Cohen of SAC Capital Advisors had difficulty generating returns in 2006

- Bigger is not better if you're a day trader like Steve Cohen of SAC Capital

- SAC Capital grew too large for Steve Cohen's core trading strategy to work. $8 billion too large a fund size to trade nimbly

- Steve Cohen is being marginalized by his size. He is no longer in total control of entry and exit points

- As SAC got bigger, Steve Cohen's trading brilliance was increasingly less evident

- Hedge funds have to move away from day trading and must gravitate toward "buy and hold" strategies as they approach or exceed the $5 billion asset threshold

- Amaranth Advisors

- The equity markets are a discounting mechanism for inflation

- Hedge fund performance should be measured as a spread over inflation, not as an absolute number

- Credit default swap market could lead to another Long-Term Capital Management systemic risk problem

Hennessee Group LLC is a Registered Investment Adviser that consults direct investors in hedge funds on asset allocation, manager selection, and ongoing monitoring of hedge fund managers. In addition, in 1987 the company created the Hennessee Hedge Fund Index, the hedge fund industry's completely independent manager index. The Index has been in continuous use since 1987 and monitors a diverse community of 1,000 hedge fund managers representing essentially every existing hedge fund management style and strategy.

The firm, Hennessee Group (www.HennesseeGroup.com) is located at 500 5th Avenue, New York, NY 10110 (212) 857-4400.

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