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Strategies & Market Trends : Margin Calls - Share The Pain

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To: daffodil who wrote (131)12/12/2000 5:13:00 AM
From: Mama Bear  Read Replies (2) of 158
 
Of course it wasn't the use of the paired strategy that killed LTCM, it was the use of leverage. Mr. Meriwether hasn't seemd to have learned his lesson as he's starting a new fund, having raised some $300 to 500 million and planning to use a generous helping of leverage.

thestreet.com

"According to a Bloomberg report on Tuesday, JWM aims to produce returns of 15% a year, on average, using leverage of $12 to $18 for every dollar of capital."

Who the heck is dumb enough to give this guy money to manage? This way to the egress...don't miss your chance to see the egress.

Regards,

Barb
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