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The infamous mastermind of LTCM and its collapse...

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trader1
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The infamous mastermind of LTCM and its collapse... [#permalink] New post   08 Jul 2009, 06:19
John Meriwether shuts down his JWM hedge fund:

https://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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OptimusPrepJanielle
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post   09 Nov 2014, 02:56
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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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SizeTrader
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post   26 Nov 2014, 23:45
trader1 wrote:
John Meriwether shuts down his JWM hedge fund:

https://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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TonyCheckley
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post   17 Jul 2015, 09:38
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.
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Re: The infamous mastermind of LTCM and its collapse... [#permalink] New post   18 May 2016, 20:39
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OptimusPrepJanielle wrote:
Did you read the book black swan by nassim nicholas taleb?

I would like to buy it, is it recommendable?


His books are great reads, including Black Swan and Antifragile, he does poke fun at MBA's (which he himself is) so be prepared for it and take it with humor :lol:
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Re: The infamous mastermind of LTCM and its collapse... [#permalink]
18 May 2016, 20:39

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