One of the people behind what was once the largest hedge fund implosion of all time is back in the money-management game. Sixteen years after that collapse, however, Victor Haghani is still pretty scarred. And so his new fund has no leverage, no shorts, practically no employees or investors, miniscule fees and nearly as little ambition.
“My LTCM experience is a constant reminder that investment managers have much less control over returns than we would like,” Haghani, 53, says. “We do, however, have complete control over what we charge, and setting fees that are fair over the long term -- both in good times and bad -- is a pretty safe bet.”