Long Term Capital Management (LTCM), a New York fund, came close to precipitating a global crisis in 1998.
Then giant hedge fund Long Term Capital Management collapsed due to big bets on Asian currencies, causing problems also for the large banks that had financed it.
Dire talk this spring of a systemic problem with hedge funds--on the magnitude of 1998's Long Term Capital Management crisis--has not played out in reality, many analysts say.
Some events are exceedingly rare, but may have consequences large enough to pose truncation risk on a business enterprise, such as Long Term Capital Management in the late 1990s.
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Managers began to use less internal leverage following the infamous blowup of the Long Term Capital Management hedge fund in 1999, although that has been edging back up in recent years.
Remember when the options-pricing pioneer Robert Merton won the award in 1997 a year before his hedge fund Long Term Capital Management imploded and almost took down the world financial system?
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Anyone who has studied or lived through the financial panics of 9-11-2001, the 1998 collapse of Long Term Capital Management, the 1989-1991 savings and loan disaster and the 1994 Mexican peso devaluation can remember that they were similar in magnitude.
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Long-Term Capital Management was the most dramatic example of a hedge fund going belly up.
In the same period, UBS was also hopelessly entangled with Long-Term Capital Management.
On the contrary, investors flocked to Long-Term Capital Management, which he set up after leaving Salomon.
For others, the number-crunching crowd conjures up painful images of Long-Term Capital Management, the band of Ph.
Long-Term Capital Management, a hedge fund that collapsed in 1998, was run by highly experienced traders and economists.
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In September, the Federal Reserve co-ordinated a rescue of Long-Term Capital Management, a big hedge fund facing collapse.
That's what sank Long-Term Capital Management three years ago, nearly taking down the whole bond market with it.
McDonough sparked controversy in 1998 when he assembled 14 banks to bail out the collapsing hedge fund Long-Term Capital Management.
He featured prominently in Goldman's negotiations with fellow investment banks to bail out hedge fund Long-Term Capital Management in 1998.
The collapse of two hedge funds, Long-Term Capital Management in 1998 and Amaranth Advisors in 2006, were cases in point.
Keep in mind that brokerage houses are just as leveraged as was Long-Term Capital Management, at about 25-to-1 debt-to- capital ratios.
But for Ian Stewart, the story of Black-Scholes - and of Long-Term Capital Management - is a kind of morality tale.
Ever since the demise of Long-Term Capital Management in 1998, regulators have worried that banks might lend too much to individual funds.
This happened notoriously a year ago, when Long-Term Capital Management ran into trouble and had to be bailed out by its bankers.
But ten years ago the Fed helped organise the rescue of Long-Term Capital Management, a hedge fund (although no public money was involved).
That is a larger premium even than during the financial crisis caused by the collapse of Long-Term Capital Management in the autumn of 1998.
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This mythical financial security first entered the investment lexicon after the crisis in 1998 over the collapse of Long-Term Capital Management, a hedge fund.
The idea behind Long-Term Capital Management was that pricing anomalies in the market could be picked up with the help of sophisticated quantitative analysis.
Then came the Russian debt crisis and Long-Term Capital Management's demise.
Wall Street prides itself on being a meritocracy, but those who fail spectacularly often get a second chance: think of John Meriwether of Long-Term Capital Management.
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And in 1998, Russia's default led to the near-collapse of Long-Term Capital Management, a hugely leveraged hedge fund, and caused huge losses for other leveraged investors.
Ten years ago this month, the New York Fed orchestrated the orderly unwinding of hedge fund Long-Term Capital Management, which foundered on exposures to Russian government bonds.
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Only last autumn, the Fed had to save world finance by masterminding the rescue of Long-Term Capital Management, a hedge fund, and cutting interest rates three times.
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