JWM Partners LLC was a

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 ...

started by

John Meriwether John William Meriwether (born August 10, 1947) is an American hedge fund executive. Education Meriwether earned an undergraduate degree from Northwestern University and an MBA degree from the University of Chicago Booth School of Business. Sal ...

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 of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in ...

(LTCM) in 1998. LTCM was one of the most spectacular failures of Wall Street, leading to a bailout of around $4 billion that was provided by a consortium of Wall Street banks. Meriwether started the company with initial capital of $250 million with loyal

quants Quants may refer to: * Quants Reserve, a nature reserve in Somerset, England * Quantitative analysts * ''The Quants'', a book by Scott Paterson Scott Thomas Paterson (born 13 May 1972) is a Scottish professional football coach and former playe ...

and traders like Victor Haghani, Larry Hilibrand, Dick Leahy, Arjun Krishnamachar and Eric Rosenfeld. As of April 2008, the company had around $1.6 billion in management. Eric Rosenfeld left to start his own fund.

Performance

The funds posted gains for several years, but in the first quarter of 2008 posted losses, of 14% in the Global Macro Fund, and 31% in the flagship Relative Value Opportunity bond fund. Together with redemptions, this cut the capital base significantly.

Mission

The fund claimed to use the same model as LTCM with more rigorous and better risk management. It also claimed a leverage ratio of 15 to 1.

Closure

On July 7, 2009, it was announced that the fund would be closed after suffering a loss of 44% in the main fund between September 2007 and February 2009.

References

Notes

* * * Financial services companies established in 1998 Hedge fund firms in Connecticut Companies based in Greenwich, Connecticut {{US-finance-company-stub