Long-Term Capital Management L.P. (LTCM) was a highly-leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in 1994 by John Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers.
Long-Term Capital Management (LTCM) was a large hedge fund, led by Nobel Prize-winning economists and renowned Wall Street traders, that blew up in 1998, forcing the U.S. government to intervene ...
Long-Term Capital Management was a massive hedge fund with $126 billion in assets. It almost collapsed in late 1998. If it had, that would have set off a global financial crisis. LTCM's success was due to the stellar reputation of its owners.
The 10th anniversary of the harrowing financial events of September 2008 is nearly upon us. The anniversary will undoubtedly be marked by various retrospectives analyzing those events. For a longer-term perspective, though, it may be helpful to consider another anniversary that will be observed in September 2018: the near failure of Long-Term Capital Management, L.P. and its fund, Long-Term Capital Portfolio, L.P. (collectively “LTCM”) 20 years ago.
By February 1994, Long-Term Capital launched with the largest amount of funding ever at $1.25 billion. In two years, LTCM had risen to over $140 billion in assets.
Long-Term Capital Management (LTCM) was founded as a hedge fund in 1994 by Salomon Brothers star trader John Meriwether. LTCM enjoyed an impeccable reputation and boasted two Nobel Laureates on staff: Robert Merton and Myron Scholes. The firm primarily invested in risk arbitrage strategies and was well known for its acumen in this area.
When Genius Failed: The Rise and Fall of Long-Term Capital Management is a book by Roger Lowenstein published by Random House on October 9, 2000. The book puts on an unauthorized account of the creation, early success, abrupt collapse, and rushed bailout of Long-Term Capital Management (LTCM). LTCM was a tightly-held American hedge fund founded in 1993 which commanded more than $100 billion in assets at its height, then collapsed abruptly in August/September 1998.
Long-Term Capital Management was a type of investment vehicle known as a hedge fund. Hedge funds are essentially large unregulated private investment pools for wealthy individuals and institutions. Specifically, hedge funds “are exempt under sections 3(c)(1) and 3(c)(7) of the 1940 Investment Company Act.”7 This means that hedge funds are not limited
Sept. 11, 2000 12:01 am ET. The 1998 meltdown of Long-Term Capital Management was a singular debacle. Markets around the globe plunged and the financial system itself seemed in peril -- all on ...
Using data from Managed Accounts Reports, the author examines the size of the hedge fund industry, returns, correlations, and risks. In addition, he reviews the primary classifications of hedge funds and considers how hedge funds achieve their performance. The author describes the history of Long-Term Capital Management (LTCM) and reviews the performance and size of its assets under management.