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The infamous mastermind of LTCM and its collapse...

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Senior Manager
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The infamous mastermind of LTCM and its collapse... [#permalink] New post 08 Jul 2009, 05:19
John Meriwether shuts down his JWM hedge fund:

http://www.bloomberg.com/apps/news?pid= ... 2lwUiCKGMM

He had his hey-day in the 80s, but perhaps it was all luck. Fooled by randomness so to speak...and black swans are more common than we realize ;)
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post 09 Nov 2014, 01:56
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Did you read the book black swan by nassim nicholas taleb?

I would like to buy it, is it recommendable?
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post 26 Nov 2014, 22:45
trader1 wrote:
John Meriwether shuts down his JWM hedge fund:

http://www.bloomberg.com/apps/news?pid= ... 2lwUiCKGMM

He had his hey-day in the 80s, but perhaps it was all luck. Fooled by randomness so to speak...and black swans are more common than we realize ;)


If you study much about it, it isn't "black swan" nonsense; it's just the effects of liquidity coupled with game theory, plain and simple.

Read some work of financial distress and fire sales; network effects; etc.
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post 17 Jul 2015, 08:38
Hmmm I think it's just old fashioned leverage and overconfidence.

Their strategy worked just not well enough and consistently enough for the leverage they put on it.
Re: The infamous mastermind of LTCM and its collapse...   [#permalink] 17 Jul 2015, 08:38
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The infamous mastermind of LTCM and its collapse...

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