Lock up your money.
The architect of the Long-Term Capital Management disaster, John Meriwether, is starting a new hedge fund, fresh off the collapse of his latest fund.
He closed JWM Partners three months ago after the fund lost 44% of its value during the financial crisis.
Meriwether's latest venture will be called JM Advisors Management and will be located in Greenwich, CT. According to The Financial Times, "The fund is expected use the same strategy as both LTCM and JWM to make money: so-called relative value arbitrage, a quantitative investment strategy Mr Meriwether pioneered when he led the hugely successful bond arbitrage group at Salomon Brothers in the 1980s."
Well that's just fantastic. Meriwether's latest fund will attempt to make money the same way that his other funds lost money.
Anyone who invests cash with John Meriwether with his track record of value destruction deserves the losses that history suggests they will receive. That he is able to raise money suggests that the economy has rebounded -- perhaps too much.
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Reader Comments (Page 1 of 1)
10-23-2009 @ 8:21AM
Kevin said...
Hey how do you make a small fortune? Give John Meriweather a large one. Ba dump bump!!