What does long-term capital management mean?
Definitions for long-term capital management
long-term cap·i·tal man·age·ment
This dictionary definitions page includes all the possible meanings, example usage and translations of the word long-term capital management.
Wikipedia
Long-Term Capital Management
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.LTCM was founded in 1994 by John Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers. Members of LTCM's board of directors included Myron Scholes and Robert C. Merton, who three years later in 1997 shared the Nobel Prize in Economics for having developed the Black–Scholes model of financial dynamics.LTCM was initially successful, with annualized returns (after fees) of around 21% in its first year, 43% in its second year and 41% in its third year. However, in 1998 it lost $4.6 billion in less than four months due to a combination of high leverage and exposure to the 1997 Asian financial crisis and 1998 Russian financial crisis. The master hedge fund, Long-Term Capital Portfolio L.P., collapsed soon thereafter, leading to an agreement on September 23, 1998, among 14 financial institutions for a $3.65 billion recapitalization under the supervision of the Federal Reserve. The fund was liquidated and dissolved in early 2000.LTCM can also be described as using an absolute return strategy in combination with high leverage.
Numerology
Chaldean Numerology
The numerical value of long-term capital management in Chaldean Numerology is: 1
Pythagorean Numerology
The numerical value of long-term capital management in Pythagorean Numerology is: 7
Examples of long-term capital management in a Sentence
We are sizing the default waterfall funds on a daily basis based on a test that combines the stresses of the 2008 crisis, the 1987 stock market crash, the failure of Long-Term Capital Management, and all of these other major events - together - and then making sure there is still enough pre-paid capital to withstand the failure of the two largest clearing members in that scenario.
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"long-term capital management." Definitions.net. STANDS4 LLC, 2024. Web. 29 Apr. 2024. <https://www.definitions.net/definition/long-term+capital+management>.
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