JWM Partners LLC was a
hedge fund
A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...
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 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 and traders like
Victor Haghani
Victor Haghani (born 1962) is an Iranian-American founder of Elm Wealth, a research-driven wealth advisor and manager.
Haghani was one of the founding partners of Long-Term Capital Management (LTCM), a hedge fund which collapsed in 1998 and was ...
, 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