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# The infamous mastermind of LTCM and its collapse...

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Senior Manager
Joined: 30 Jul 2007
Posts: 385

Kudos [?]: 59 [0], given: 5

Location: Europe
Schools: St. Gallen '09
The infamous mastermind of LTCM and its collapse... [#permalink]

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08 Jul 2009, 06:19
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

Kudos [?]: 59 [0], given: 5

Optimus Prep Instructor
Joined: 06 Nov 2014
Posts: 1905

Kudos [?]: 522 [0], given: 23

Re: The infamous mastermind of LTCM and its collapse... [#permalink]

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09 Nov 2014, 02:56
Did you read the book black swan by nassim nicholas taleb?

I would like to buy it, is it recommendable?
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# Janielle Williams

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Kudos [?]: 522 [0], given: 23

Intern
Joined: 19 Feb 2014
Posts: 18

Kudos [?]: 9 [0], given: 1

Concentration: Finance
GRE 1: 1580 Q800 V780
WE: Securities Sales and Trading (Investment Banking)
Re: The infamous mastermind of LTCM and its collapse... [#permalink]

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26 Nov 2014, 23:45
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.

Kudos [?]: 9 [0], given: 1

Intern
Joined: 29 Jun 2015
Posts: 6

Kudos [?]: [0], given: 0

Re: The infamous mastermind of LTCM and its collapse... [#permalink]

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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.

Kudos [?]: [0], given: 0

Joined: 24 Jan 2016
Posts: 508

Kudos [?]: 71 [0], given: 7

Re: The infamous mastermind of LTCM and its collapse... [#permalink]

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18 May 2016, 20:39
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
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Kudos [?]: 71 [0], given: 7

Re: The infamous mastermind of LTCM and its collapse...   [#permalink] 18 May 2016, 20:39
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# The infamous mastermind of LTCM and its collapse...

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