Shift for SAC's Cohen

In 2006, the Credit Suisse/Tremont Hedge Fund Index rose a little under 14%, just slightly better than the 13.6% gain in the S&P 500.

A recent study by the Spectrem Group, a consulting firm, found that wealthy Americans reduced their exposure to hedge funds in 2006. Indeed, one former hedge fund manager who declined to be identified says he pulled money out of many of the funds he was invested in because he's been dissatisfied with returns they've generated.

Cohen's SAC, of course, wasn't one of the hedge funds suffering from poor performance last year. But with private equity firms grabbing all the headlines and fat fees these days, a savvy manager like Cohen may not want to be left on the outside looking in.