Related Research Articles
In economics and finance, arbitrage is the practice of taking advantage of a difference in prices in two or more markets – striking a combination of matching deals to capitalise on the difference, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price.
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.
Robert Cox Merton is an American economist, Nobel Memorial Prize in Economic Sciences laureate, and professor at the MIT Sloan School of Management, known for his pioneering contributions to continuous-time finance, especially the first continuous-time option pricing model, the Black–Scholes–Merton model. In 1997 Merton together with Myron Scholes were awarded the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel for the method to determine the value of derivatives.
Myron Samuel Scholes is a Canadian–American financial economist. Scholes is the Frank E. Buck Professor of Finance, Emeritus, at the Stanford Graduate School of Business, Nobel Laureate in Economic Sciences, and co-originator of the Black–Scholes options pricing model. Scholes is currently the chairman of the Board of Economic Advisers of Stamos Capital Partners. Previously he served as the chairman of Platinum Grove Asset Management and on the Dimensional Fund Advisors board of directors, American Century Mutual Fund board of directors and the Cutwater Advisory Board. He was a principal and limited partner at Long-Term Capital Management (LTCM), a highly leveraged hedge fund that collapsed in 1998, and a managing director at Salomon Brothers. Other positions Scholes held include the Edward Eagle Brown Professor of Finance at the University of Chicago, senior research fellow at the Hoover Institution, director of the Center for Research in Security Prices, and professor of finance at MIT's Sloan School of Management. Scholes earned his PhD at the University of Chicago.
John William Meriwether is an American hedge fund executive.
Alfred Winslow Jones was an American investor, hedge fund manager, and sociologist. He is credited with forming the first modern hedge fund and is widely regarded as the "father of the hedge fund industry."
Large and complex financial institutions (LCFI) is a polite term for the bulge bracket banks. The context is that of systemic risk, a topic of particular concern to central banks, financial regulators and the Bank for International Settlements.
A dual-listed company or DLC is a corporate structure in which two corporations function as a single operating business through a legal equalization agreement, but retain separate legal identities and stock exchange listings. Virtually all DLCs are cross-border, and have tax and other advantages for the corporations and their stockholders.
When Genius Failed: The Rise and Fall of Long-Term Capital Management is a book by Roger Lowenstein published by Random House on October 9, 2000. The book tells an unauthorized account of the creation, early success, abrupt collapse, and rushed bailout of Long-Term Capital Management (LTCM). LTCM was a tightly-held American hedge fund founded in 1993 which commanded more than $100 billion in assets at its height, then collapsed abruptly in August and September 1998. Prompted by concerns about LTCM's thousands of derivative contracts, in order to avoid a panic by banks and investors worldwide, the Federal Reserve Bank of New York stepped in to organize a bailout with the various major banks at risk.
Gregory Dale Hawkins was a trader and principal in the hedge fund Long-Term Capital Management that after four spectacularly successful years lost most of its clients' money in 1998 when the Russian government defaulted on its debt payments on August 17, 1998, triggering a devaluation of the Russian ruble. Long-Term Capital had $4.6 billion in portfolio losses in a few months and only avoided outright bankruptcy because the U.S. central bank prompted a consortium of large global investment banks and counter-parties of LTCM to provide an equity bailout. LTCM shutdown in early 2000.
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.
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. Eric Rosenfeld left to start his own fund.
Chi-fu Huang is a private investor, retired hedge fund manager, and former finance academic. During his career, Huang has contributed to the theory of financial economics, written on dynamic general equilibrium theory, intertemporal utility theory, and the theory of individual consumption and portfolio decisions.
David Wiley Mullins Jr. was an American economist who served as the 14th vice chairman of the Federal Reserve from 1991 to 1994. Prior to his term as vice chairman, Mullins served as a member of the Federal Reserve Board of Governors, taking office in 1990. Before his appointment to the Federal Reserve, he served as the under secretary of the treasury for domestic finance under President George H. W. Bush. Mullins left the government service to join the hedge fund Long Term Capital Management and remained in private finance following its collapse in 1998.
Brevan Howard is a European hedge fund management company based in Jersey with its funds domiciled in the Cayman Islands. Brevan Howard was founded in 2002 by Alan Howard, alongside four other co-founders including Chris Rokos, and is widely considered to be one of the top global macro hedge funds.
Paulson & Co. Inc. is a family office based in New York City, previously it was a hedge fund established by John Paulson in 1994. It specializing in "global merger, event arbitrage and credit strategies", the firm had a relatively low profile on Wall Street until its hugely successful bet against the subprime mortgage market in 2007. At one time the company had offices in London and Dublin.
James G. Rickards is an American lawyer, investment banker, media commentator, and author on matters of finance and precious metals. He is the author of Currency Wars: The Making of the Next Global Crisis (2011) and six other books. He currently lives in Connecticut.
Michael Edward Platt is a British billionaire hedge fund manager. He is the co-founder and managing director of BlueCrest Capital Management, Europe's third-largest hedge-fund firm which he co-founded in 2000. He is Britain's wealthiest hedge fund manager according to the Forbes Real Time Billionaires List, with an estimated wealth of US$15.2 billion.
Christopher Charles Rokos is a British billionaire hedge fund manager. He is the founder of macro hedge fund Rokos Capital Management and a former founding partner of Brevan Howard Asset Management.
The Missing Billionaires: A Guide to Better Financial Decisions is a 2023 book by James White and Victor Haghani. Haghani was a founding partner of Long-Term Capital Management.
References
- ↑ Nakamura, Yuji (25 March 2015). "Quant Who Shook the Financial World Tries More Humble Approach". Bloomberg News. Bloomberg. Retrieved 31 March 2015.
... Haghani, 53, says...
- ↑ Jakab, Spencer (16 December 2021). "YOLO Bets, Deconstructed". The Wall Street Journal.
- ↑ Haubrich, Joseph G (2007). "Some Lessons on the Rescue of Long-Term Capital Management". Federal Reserve Bank of Cleveland. Policy Discussion Paper no. 07-19.
- ↑ Report of the President's Working Group on Financial Markets on Hedge Funds, Leverage, and the Lessons of Long-Term Capital Management (LTCM) 28 April 1999. https://www.cftc.gov/sites/default/files/tm/tmhedgefundreport.htm Accessed 31 December 2021 "…involved the recapitalization of the LTCM Fund through mutual investments by its major counterparties in a recently set up feeder fund and a relatively small investment in a newly set up limited liability company which became a new general partner of the LTCM Fund…the consortium would acquire the remaining 90 percent ownership share, as well as operational control of LTCM…"(The LTCM Episode, Section B: LTCM’s Near Failure)
- ↑ Lewis, Michael (1989). Liar's Poker: Rising through the Wreckage on Wall Street. New York: W.W. Norton. ISBN 0-393-02750-3.
- 1 2 3 TEDxASL "Theme: Empowering a community through one" (12 October 2013) https://www.ted.com/tedx/events/9285
- ↑ Johnson, Miles (5 May 2017). "Ex-LTCM trader on his unexpected conversion to passive investing". Financial Times.
- ↑ Haghani, Victor; White, James (2023). The Missing Billionaires: A Guide to Better Financial Decisions (1st ed.). Wiley. ISBN 978-1119747918.
 | This article about a United States businessperson is a stub. You can help Wikipedia by expanding it. |