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    Josh Lerner, Peter Tufano, and I met in late July 1993 at Aberlyn Capital Management, a $10 million hedge fund in Cambridge. Aberlyn had only two employees, and Josh was its first employee. Josh had a PhD from Stanford and had spent time at Stanford, the Wharton School of the University of Pennsylvania, and Cambridge University (where he worked on a PhD thesis with Peter). Peter, who had done a PhD at Cambridge, had worked at the International Monetary Fund and the World Bank

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    Josh Lerner is now CEO of Peter Tufano is now CEO of Aberlyn Capital Management. In 1993, they started the first hedge fund, called Aberlyn Capital Management. Lerner, a 1987 graduate of Harvard Business School, began his professional career at Arthur Andersen. During the summer of 1989, he became a fellow at the Wharton School’s Innovation Lab, which was led by Mark D. Rauch. Lerner then became a research assistant to Drew Faust at

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    Aberlyn Capital Management (ABM), a successful private equity firm based in New York City, had been on a roll since its establishment in 1992. ABM focused primarily on buying businesses from the S&L industry. Investors were drawn to the firm’s low-cost alternative to investing in publicly traded S&L stocks. ABM’s success was not due to luck, but rather due to careful, strategic management of a business’ growth and development. The firm had been able to acquire and

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    Based on the information provided, what were the key strategies implemented by Aberlyn Capital Management in evaluating alternative investment strategies, and how were they successful? Additionally, what were the specific investment options analyzed and why were they considered successful?