Two of the biggest names in hedge fund lore built their careers on recognizing spectacular investments others couldn’t see. Alas, sometimes even legends flop. Alpha Hedge Fund Hall of Famers Bruce Kovner, head of $13 billion New York–based Caxton Associates, and Michael Steinhardt, the retired hedge fund manager who returned a net 24 percent annually over 28 years, were major backers of the now-defunct New York Sun.
