Long-Term Capital Management founder John Meriwether sets up another hedge fund just months after his second one, JWM Partners, was closed after losing almost half it value from the crisis and more than a decade after the birth and demise of the original Long Term Capital Management. The new fund is going to be called JM Advisors Management.
Mr Meriwether’s new venture, named JM Advisors Management, will, like both of his previous hedge fund management companies, be based in Greenwich, Connecticut.
People with knowledge of the situation say the fund has not yet started accepting outside investments, however. According to HFMWeek, an industry publication, the fund will open to investors in 2010.
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.
Vile as it may be, the story of LTCM is so fascinating I want this third fund to turn into another of that.