Looking for old LTCM news stories....

renormalon · Post by **renormalon** » Fri May 13, 2005 6:29 am

Here's a quote from Dunbar (p 209, said to be from a 2 Sep 1998 letter signed by Meriwether):

"As you are all too aware, events surrounding the collapse in Russia caused large and dramatically increasing volatility in markets throughout August....Investors everywhere have experienced large declines in their wealth. Unfortunately, Long-Term Capital Portfolio has also experienced a sharp decline in net asset value....Losses of this magnitude are a shock to us as they surely are to you....August saw an accelerating increase in the demand for liquidity in nearly every market around the world. Many of the fund's investment strategies involve providng liquidity to the market. Hence our losses across strategies were correlated after-the-fact from a sharp increase in the liquidity premium....Risk and position reduction is occurring in some strategies....On the other hand, we see great opportunites in a number of our best strategies and these are being held by the fund. As it happened, the best strategies are the ones we have worked on over many years....Since it is prudent to raise additional capital, the fund is offering you the opportunity to invest on special terms related to LTCM fees."

Cheers,

Martin

rowdyroddypiper · Post by **rowdyroddypiper** » Fri May 13, 2005 9:30 pm

"Not LTCM - but one of my favorite "we've blow-up" letters."

[b][From Office Space][/b]

[b]Peter:[/b] So I was sitting in my cubicle today, and I realized, ever since I started working, every single day of my life has been worse than the day before it. So that means that every single day that you see me, that's on the worst day of my life.

[b]DR Swanson[/b]: What about today? Is today the worst day of your life?

[b]Peter[/b]: Yeah.

[b]Dr. Swanson[/b]: Wow, that's messed up.

That's pretty much the vibe that I got from the letter. Maybe John Koonman can get hypnotized after he answers all those investor questions.

divineprofit · Post by **divineprofit** » Tue May 17, 2005 2:17 pm

LTCM Speaks

In a series of secretive roadshows, LTCM partners now admit they badly misjudged market dynamics and volatility, making common risk management mistakes on a grand scale.

http://www.derivativesstrategy.com/magazine/archive/1999/0499fea1.asp

Crassus · Post by **Crassus** » Wed May 18, 2005 10:17 am

Oh come on is that name for real? "I phuck you"

To: I phuck you investors ...

YukaRedux · Post by **YukaRedux** » Wed May 18, 2005 10:39 am

it's absolutely real.... and rather appropriate...

ItDragsWhenIWalk · Post by **ItDragsWhenIWalk** » Thu May 19, 2005 4:27 am

Eifuku was a Japan-based hedge fund. Some funds blow up, this one evaporated. It lost 98% in 7 trading days in 2003. Here's an old news story:

http://www.backtrackreports.com/eifuku.html

The man who ran the fund was incredibly secretive and very protective of his sophisticated trading strategy. It turns out his positions were punts in a handful of Japanese stocks.

JabairuStork · Post by **JabairuStork** » Thu May 19, 2005 6:50 am

[i]It lost 98% in 7 trading days[/i]

Worship

I wish I could do that.

LongTheta · Post by **LongTheta** » Fri May 20, 2005 4:59 pm

Yuka,

Thanks for that letter. It's posts like this that make NP great.