LTCM founder Meriwether returns to market

The founder of Long-Term Capital Management, who oversaw the worst failure in hedge fund history, is returning to the market.

John Meriwether, who set up the vehicle in 1994, is set to launch a new a global macro hedge fund strategy targeting both US and offshore investors, Financial News reports. It is the third venture for Meriwether, who witnessed sharp losses in his previous relative value arbitrage strategies - LTCM and JWM Partners. LTCM suffered sharp declines during the 1997 financial crisis in East Asia, followed by ever larger declines during the Russian financial crisis a year later. Fearing a chain reaction should LTCM totally collapse, the Federal Reserve Bank of New York organised a $3.6bn b...