It's a humbling time for Louis Moore Bacon. The 55-year-old founder of the $15 billion Moore Capital Management -- and one of the premier hedge fund investors of the past two decades -- just weathered his second down year in the past four after a particularly ragged run in the markets. His onetime heir apparent recently launched his own fund and a spate of negative publicity in the past few years has raised questions about his management.
Amid the tumult, the Dodd-Frank legislation now requires Moore and other large hedge funds to register with the Securities & Exchange Commission and provide details about their risk management, trading, and disciplinary records. Bacon is loath to reveal any of it.
That has prompted him to reconsider the way he has done business for more than 20 years, according to associates. Some, in fact, believe that in the coming years Bacon may transform Moore into what's known as a "family office," a far smaller operation primarily managing Bacon's own capital as opposed to that of outside investors. "Louis has been talking about becoming a family office for at least two years," says one investor, adding that Bacon considers the new disclosures required by the Dodd-Frank Act to be "a problem."