Credit funds top 2014 hedge funds ranking

Portland, Oregon

BRETT Jefferson told his five-year-old son this about Wall Street recently: "Never will you find a place where so many smart people do so many stupid things." That's a good deal for Mr Jefferson, 49, who has been profiting from bankers' blunders for more than a decade. His hedge-fund firm, Stamford, Connecticut-based Hildene Capital Management, vacuums up complex securities when others are shunning them as toxic junk. So does Michael Craig-Scheckman's Deer Park Road Corp, Bloomberg Markets magazine will report in its February issue.

"We make money because people on Wall Street make mistakes," says Mr Craig-Scheckman, 62, whose firm is based in Steamboat Springs, Colorado.