John William Meriwether (born August 10, 1947) is an American

hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as shor ...

executive.

Education

Meriwether earned an undergraduate degree from

Northwestern University Northwestern University is a private research university in Evanston, Illinois. Founded in 1851, Northwestern is the oldest chartered university in Illinois and is ranked among the most prestigious academic institutions in the world. Chart ...

and an

MBA A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...

degree from the

University of Chicago Booth School of Business The University of Chicago Booth School of Business (Chicago Booth or Booth) is the graduate business school of the University of Chicago. Founded in 1898, Chicago Booth is the second-oldest business school in the U.S. and is associated with 10 N ...

Salomon Brothers

After graduation, Meriwether moved to New York City, where he worked as a bond trader at

Salomon Brothers Salomon Brothers, Inc., was an American multinational bulge bracket investment bank headquartered in New York. It was one of the five largest investment banking enterprises in the United States and the most profitable firm on Wall Street duri ...

. At Salomon, Meriwether rose to become the head of the domestic

fixed income arbitrage Fixed-income arbitrage is a group of market-neutral-investment strategies that are designed to take advantage of differences in interest rates between varying fixed-income securities or contracts (Jefferson, 2007). Arbitrage in terms of investment ...

group in the early 1980s and vice-chairman of the company in 1988. In 1991, Salomon was caught in a

Treasury securities United States Treasury securities, also called Treasuries or Treasurys, are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Since 2012, U.S. gov ...

trading scandal perpetrated by a Meriwether subordinate, Paul Mozer. Meriwether was assessed $50,000 in civil penalties.

LTCM

Meriwether founded the

Long-Term Capital Management Long-Term Capital Management L.P. (LTCM) was a highly-leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in 1 ...

Greenwich, Connecticut Greenwich (, ) is a town in southwestern Fairfield County, Connecticut, United States. At the 2020 census, the town had a total population of 63,518. The largest town on Connecticut's Gold Coast, Greenwich is home to many hedge funds and othe ...

in 1994. Long-Term Capital Management collapsed in 1998. The books '' When Genius Failed: The Rise and Fall of Long-Term Capital Management'' and ''Inventing Money: The Story of Long-Term Capital Management and the Legends Behind It'' detail the events leading up to and following Long-Term Capital Management's demise.

JWM Partners

A year after LTCM's collapse, in 1999, Meriwether founded

JWM Partners LLC JWM Partners LLC was a hedge fund started by John Meriwether after the collapse of Long-Term Capital Management Long-Term Capital Management L.P. (LTCM) was a highly-leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group ...

. The

hedge fund opened with $250 million under management in 1999 and by 2007 had approximately $3 billion. The

Financial crisis of 2007-2009 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...

badly battered Meriwether's firm. From September 2007 to February 2009, his main fund lost 44 percent. On July 8, 2009, Meriwether closed the fund.

JM Advisors

Meriwether opened his third hedge fund venture, named JM Advisors Management, also based in

, in 2010. The fund is expected to use similar strategies as both LTCM and JWM, namely highly leveraged "relative value arbitrage". By March 2011, however, the JM Advisors Macro Fund had raised only $28.85 million. As of 2011 it managed roughly $108.85 million.

Thoroughbred racing

Meriwether has been an owner of

thoroughbred The Thoroughbred is a horse breed best known for its use in horse racing. Although the word ''thoroughbred'' is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thoroughbred breed. Thoroughbreds are co ...

horses for a number of years and is a member of the

board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...

of the

New York Racing Association The New York Racing Association, Inc. (NYRA) is the not-for-profit corporation that operates the three largest Thoroughbred horse racing tracks in the state of New York (state), New York, United States: Aqueduct Racetrack in South Ozone Park, Quee ...

(NYRA). He notably campaigned Buckhan, the winner of the 1993 Washington, D.C. International Stakes.John Meriwether, Richard Leahy - NTRA

References

External links

Case Study: Long-Term Capital Management

{{DEFAULTSORT:Meriwether, John 1947 births American bankers American financial company founders American financiers American hedge fund managers American investors American money managers American racehorse owners and breeders American stock traders Businesspeople from Chicago Living people Long-Term Capital Management New York Racing Association executives Northwestern University alumni Businesspeople from Greenwich, Connecticut University of Chicago Booth School of Business alumni