Only a little less than ten years after his first hedge fund blew up and threatened the stability of the financial system, John Meriwether has announced that his current fund, JWM Partners, will wind down operations after a loss of 44% from September 2007 through February 2009. At the start of 2008, the fund had assets of over $1 billion.
Back in 1998, when Meriwether's first fund (Long-Term Capital Management) got into trouble, the Fed had to arrange a $3.6 billion bailout in order to 'save the financial system.' Today, Fed bailouts to save the financial system cost trillions. Talk about inflation!
Following the closure of his current fund, Bloomberg reported that, "For many investors, John Meriwether is by now just another hedge-fund manager.” Just another hedge-fund manager? How many other hedge fund managers do you know with a resume that includes a US Treasury trading scandal, Long-Term Capital, and now this?