Quote of the day: trickier than LTCM

By Edward Harrison On Aug 10, 2008

On Friday, Bloomberg quoted a former LTCM partner as saying the $1.9 trillion hedge fund industry faces “much worse” conditions than in 1998, when Long-Term Capital Management LP collapsed.

“It’s definitely a trickier environment. The market is much worse that it was in 1998. Then it was just LTCM, but this impacts everybody.”

–Hans Hufschmid, former partner at LTCM

To date, we have not seen an LTCM-like blow up. Are these guys good, lucky or is there risk lurking in the weeds? Is the commodity-play unwind just the thing to bring the dead bodies to the surface? The violence of the commodity and currency moves has the faint whiff of panic.

hedge funds quote of the day

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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