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Strategy: 20 investing rules from hedge fund legend

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Editor's note: Pro Strategy is a column on how to use the strategies of the smartest minds on Wall Street to generate quality investment ideas.

Back in the 1990s investors avidly passed around Dan Benton's Goldman Sachs memo with 20 rules for technology stock investing. The maxims became legendary as he turned into the best technology hedge fund manager in the world by the end of that decade. We'll show that his rules are still relevant today and can be applied to generate new long and short ideas.

Benton started his Wall Street career as an influential PC analyst at Goldman Sachs from 1988 to 1993. He then joined Dawson Samberg as a technology portfolio manager and later became president of Pequot Capital, the successor firm.

By the time he started Andor Capital in 2001, he managed the most successful tech-focused hedge fund in the world with $7.5 billion in assets. The funds Benton managed from 1994 to 2001 had annual returns of 53 percent, compared to the 's 13.3 percent return, according to The Wall Street Journal.

Here are the 20 investing rules Benton wrote at Goldman Sachs that many believe led to his success.