Chapter 7 Long-Term Capital Mismanagement
“JM and the Arb Boys”
Long-Term Capital Management (LTCM) began operations in 1994 with more than $1 billion in capital and what looked like unbridled potential to succeed. Its founding principals were a virtual who’s who of world-class academics and seasoned Wall Street practitioners. A string of outstanding successes188 built LTCM’s equity position in three short years to $7.1 billion. In 1996 alone, the company cleared more than $2 billion. LTCM’s principals, who had invested $146 million in 1994, watched as their share of the pie grew to $1.9 billion. They were all multimillionaires, and so was everyone lucky enough to have a piece of the action. In fact, one LTCM principal was already half way to ...
Get Risk Takers now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
