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Strategies & Market Trends : Hedge Funds -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (39)	10/9/1998 12:11:00 PM
From: Marty Rubin	Respond to of 120

"Meriwether Transferred Property to Wife During LTCM's Fall" Thursday October 8, 5:27 pm Eastern Time Company Press Release Meriwether Transferred Property to Wife During LTCM's Fall NEW YORK--(BUSINESS WIRE)--Oct. 8, 1998--On Aug. 27, in the midst of the marketplace slaughter that sent John W. Meriwether's beleaguered hedge fund, Long Term Capital Management, to the brink of catastrophe, Meriwether signed an ''interspousal transfer grant deed'' transfering a 20-acre vacant lot in a tony residential area of Pebble Beach, Calif., to his wife. Was Meriwether seeking to put a major personal asset out of the reach of potential creditors -- such as unhappy investors? A Business Week examination of public records shows that long before the Aug. 27 transfer, Meriwether had shielded his own and his partners assets in the event LTCM ever got into trouble. Contact: Robert Pondiscio Publication: Business Week Phone: 212/512-6311 Fax: 212/512-2030 Web site: www.businessweek.com (http://biz.yahoo.com/bw/981008/tradeticke_1.html) --------------------------------------------------------------------- Thursday October 8, 6:33 pm Eastern Time Meriwether land transfer unrelated to LTCM woes NEW YORK, Oct 8 (Reuters) - A property transfer between John Meriwether, whose hedge fund Long Term Capital Management teetered near collapse before a billion-dollar bailout, and his wife was not done to protect his personal assets from any potential lawsuits, a spokesman for the fund said Thursday. Business Week reported in its Oct. 19 issue that Meriwether signed an ''interspousal transfer grant deed'' on Aug. 27, transferring a 20-acre vacant lot in Pebble Beach, California, to his wife, Mimi. An LTCM spokesman told Reuters Thursday that the property transfer was completed as part of ''an estate planning strategy that had been underway for some time.'' The spokesman said there was no connection between the timing of the transfer and the near-collapse of the fund. A consortium of banks last month put together a $3.5 billion bailout for LTCM to protect the fund from collapse. Business Week reported that LTCM is structured so that Meriwether and the other 15 principals have no liability beyond their own investment in the funds. The magazine said shifting the property to his wife as ''her sole and separate property'' moves it out of the reach of future creditors. However, a California attorney who specializes in estate planning and asset protection, said the timing of the transfer could cause it to be portrayed as a fraudulent act intended to hinder creditors. ''It smacks of a fraudulent conveyance,'' L. David Burningham told Business Week. (http://biz.yahoo.com/rf/981008/bqw.html) EOPEOPEOPEOPEOPEOPEOPEOPEOPEOP**

To: Marty Rubin who wrote (39)	10/9/1998 12:14:00 PM
From: Marty Rubin	Read Replies (3) \| Respond to of 120

"LTCM has used about $1.9 bln of funds so far -WSJ" Friday October 9, 7:12 am Eastern Time LTCM has used about $1.9 bln of funds so far -WSJ NEW YORK, Oct 9 (Reuters) - Long-Term Capital Management LP has gone through about $1.9 billion of the $3.625 billion it received from a group of financial institutions, people close to the situation said, the Wall Street Journal reported Friday. The $1.9 billion may may include market losses, but much of it was used to pay off a $483 million loan facility led by Chase Manhattan Corp. (NYSE:CMB - news) to cancel repurchase agreements and to pay charges on trades with other parties, the report said. So all told the hedge fund had about $1.7 billion in cash as of Monday, sources told the Journal. (http://biz.yahoo.com/rf/981009/gf.html)