JWM Partners

JWM Partners LLC was a hedge fund started by John Meriwether after the collapse of Long-Term Capital Management (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, Larry Hilibrand, Dick Leahy, Arjun Krishnamachar and Eric Rosenfeld. As of April 2008, the company had around $1.6 billion in management.{{cite news

|url=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3835160.ece

|archive-url=https://web.archive.org/web/20110612072527/http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3835160.ece

|url-status=dead

|archive-date=June 12, 2011

|title=Job cuts at Meriwether hedge fund

|date=2008-04-28

|access-date=2008-09-21

| location=London

| work=The Times

| first=Catherine

| last=Boyle}} 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.{{cite news| url=https://www.bloomberg.com/apps/news?pid=20601087&sid=aU2YYpahTt0w | work=Bloomberg | title=Meriwether Said to Shut JWM Hedge Fund After Losses (Update2) | date=2009-07-08}}

References

Notes

{{cite news

|title=A Decade Later, John Meriwether Must Scramble Again: LTCM Founder Has Tough Time Stemming Losses at New Funds; A Withdrawal Deadline Nears

|url=https://www.wsj.com/articles/SB120658664128767911

|last=Strasburg

|first=Jenny

|date=2008-03-27

|access-date=2008-09-21

|work=The Wall Street Journal

}}

{{cite web

|url=http://hf-implode.com/ailing/fund_JWMPartnersLLC-RelativeValueOpportunityfund_2008-03-27.html

|title=JWM Partners LLC - Relative Value Opportunity fund - relative value

|work=The Hedge Fund Implode-o-Meter

|date=2008-03-27

|access-date=2008-09-21

|archive-date=2016-05-28

|archive-url=https://web.archive.org/web/20160528073047/http://hf-implode.com/ailing/fund_JWMPartnersLLC-RelativeValueOpportunityfund_2008-03-27.html

|url-status=dead

}}

{{cite book|title=Inventing Money|last=Dunbar|first=Nicholas|year=2000|publisher=John Wiley & Sons|location=New York|isbn=0-471-89999-2|url-access=registration|url=https://archive.org/details/inventingmoneyst00dunb}}

Category:Financial services companies established in 1998

Category:Hedge fund firms in Connecticut

Category:Companies based in Greenwich, Connecticut