LTCM

Long-Term Capital Management co-founder Robert Merton, former Maverick Capital chief macroeconomic strategist Steve Galbraith and Massachusetts Institute of Technology’s Andrew Lo were recently named by the U.S. Treasury to serve on the Financial Research Advisory Committee of the Office of Financial Research. The Dodd-Frank Act established the OFR within Treasury to “serve the Financial Stability Oversight Council, its member agencies, and the public by improving the quality, transparency, and accessibility of financial data and information; conducting and sponsoring research related to financial stability; and promoting best practices in risk management,” according to a Treasury statement. [Hedge Fund Intelligence]

Earlier today, it was announced that Matt Zames had been named JPMorgan’s new Chief Investment Officer, to replace Ina Drew, the woman who supervised the trader responsible for the firm’s whale of a loss and was dismissed over the weekend. Previously, Zames served as the firm’s head of fixed income and while he may be happy to be seen by senior management as a guy capable of putting out a fire, based on his experience, is probably at least a little bit underwhelmed by the task. Read more »

  • 12 Nov 2010 at 10:49 AM

Nassim Taleb: Ben Bernanke Doesn’t Understand Risk

“Did Ben Bernanke see the crisis?” Nassim Taleb asked on Bloomberg TV today. “No,” Taleb answered himself, “He was flying the plane and he crashed the plane…[Bernanke] reminds me of the LTCM people. They had brilliant people with great academic records and they blew up the fund and almost blew up Wall Street…Bernanke is someone who talks about returns without talking about risk. It’s identical to a pilot who is talking about speed — not talking about safety. The measures he is using, this quantitative easing, may work but should it fail the risks are humongous.” Read more »

Here’s a lil’ pick me up for all you bankers thinking you’re the only ones taking it up the tailpipe– JWM Partners, the fund started by John Meriwether after things started to go downhill at LTCM, which recently lost 24 percent in its $1 billion fixed-income hedge fund this year through March 14, just laid off ten employees and two partners have “quit.” DealBreaker has obtained a portion of the heartfelt note Meriwether sent to the unlucky staffers, which you’ll find after the jump.

Read more »

The investment firm run by chief John Meriwether lost 24 percent in its $1 billion fixed-income hedge fund this year through March 14, two people “with knowledge of the matter” have told Bloomberg. Meriwether, of course, was one of the big men behind Long-Term Capital Management LP, which collapsed in the late 1990s. LTCM lost almost $4 billion. Not even two years ago, Alternative Investment News gave him their Lifetime Achievement Award.
John Meriwether’s Bond Fund Loses 24% on Credit-Market Plunge [Bloomberg]