Discussion in 'Trading' started by Turboman24, Nov 4, 2002.

  1. Anyone know where I can find LTCMs yearly returns for the short period of time they ran money. Surprisingly I can't find it on the net. Its for a paper that's due on Thursday. I'de appreciate any clues.
  2. The fund's operations were conducted in absolute secrecy. Investors who asked questions were told to take their money somewhere else. Nevertheless, despite the minimum initial payment of $10 million frozen for three years, there was a rush to invest and the results appeared to be well up to expectations. After taking 2% for "administrative expenses" and 25% of the profits, the fund was able to offer its shareholders returns of 42.8% in 1995, 40.8% in 1996, and "only" 17.1% in 1997 (the year of the Asian crisis). But in September, after mistakenly gambling on a convergence in interest rates, it found itself on the verge of bankruptcy.
    The LTCM data there is very detailed and interesting, but otherwise this paper is a defense of VaR (value at risk), which might be hyped by academics and bureaucrats, but it is not what any seasoned trader on this board would recommend you, which is, i) do not risk all your capital in one trade and ii) always use a stop loss.
  4. If you goto the SEC's site:
    <a href="">EDGAR</a>
    and search the EDGAR database there's some stuff in there from LTCM. Have to search for the full name, not the abbr.
    Good luck,

    ps - sorry if the link is hosed, trying to post as html...
  5. ....oh, that's rich. pride is to destruction as acorns are to oak trees.
  6. That's an unusual URL. Is the {} stuff something new?
  7. I'm sorry it's been a while since I checked this thread out. The {} is just part of the logo, sort of...
  8. Boomer


    i just thought i would let you know that i am in the middle of the book right now. great book. what is your paper for? it sounds interesting.
  9. 0008


    Did LTCM cut their losses or just let them run?
  10. a must read.... When Genius Failed

    the LTCM story

    when you think you're smarter than the market, and build positions so big you can't get out, call everyone you know and ask for help
    #10     Nov 13, 2002