John William Meriwether (born August 10, 1947) is an American

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

executive.

Education

Meriwether earned an undergraduate degree from

Northwestern University Northwestern University (NU) is a Private university, private research university in Evanston, Illinois, United States. Established in 1851 to serve the historic Northwest Territory, it is the oldest University charter, chartered university in ...

and an

MBA A Master of Business Administration (MBA) is a professional degree focused on business administration. The core courses in an MBA program cover various areas of business administration; elective courses may allow further study in a particular a ...

degree from the

University of Chicago Booth School of Business The University of Chicago Booth School of Business (branded as Chicago Booth) is the graduate business school of the University of Chicago, a private research university in Chicago, Illinois. Founded in 1898, Chicago Booth is the second-oldest ...

Salomon Brothers

After graduation, Meriwether moved to New York City, where he worked as a bond trader at

Salomon Brothers Salomon Brothers, Inc., was an American multinational bulge bracket investment bank headquartered in New York City. It was one of the five List of investment banks, largest investment banking enterprises in the United States and a very profitabl ...

. At Salomon, Meriwether rose to become the head of the domestic

fixed income arbitrage Fixed-income arbitrage is a group of market-neutral-investment strategies that are designed to take advantage of differences in interest rates between varying fixed-income securities or contracts (Jefferson, 2007). Arbitrage in terms of investment ...

group in the early 1980s and vice-chairman of the company in 1988. In 1991, Salomon was caught in a Treasury securities trading scandal perpetrated by a Meriwether subordinate, Paul Mozer. Meriwether was assessed $50,000 in civil penalties.

LTCM

Meriwether founded the

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 ...

in 1994. The fund collapsed in 1998. The books '' When Genius Failed: The Rise and Fall of Long-Term Capital Management'' and ''Inventing Money: The Story of Long-Term Capital Management and the Legends Behind It'' detail the events leading up to and following Long-Term Capital Management's demise.

JWM Partners

A year after LTCM's collapse, in 1999, Meriwether founded JWM Partners LLC. The hedge fund opened with $250 million under management and by 2007 had approximately $3 billion. From September 2007 to February 2009, during the

Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.

, his main fund lost 44%. On July 8, 2009, Meriwether closed the fund.

JM Advisors

Meriwether opened his third hedge fund, named JM Advisors Management, in 2010. The fund is expected to use similar strategies as both LTCM and JWM, namely highly leveraged "relative value arbitrage". By March 2011, however, the JM Advisors Macro Fund had raised only $28.85 million.

Thoroughbred racing

Meriwether has been an owner of

thoroughbred The Thoroughbred is a list of horse breeds, horse breed developed for Thoroughbred racing, horse racing. Although the word ''thoroughbred'' is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thorough ...

horses for a number of years and is a member of the

board of directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...

of the

New York Racing Association The New York Racing Association, Inc. (NYRA) is the not-for-profit corporation that operates the three largest thoroughbred horse racing tracks in the state of New York (state), New York, United States: Aqueduct Racetrack in South Ozone Park, Q ...

(NYRA). He notably campaigned Buckhan, the winner of the 1993 Washington, D.C. International Stakes.John Meriwether, Richard Leahy - NTRA

References

External links

Case Study: Long-Term Capital Management

{{DEFAULTSORT:Meriwether, John 1947 births American bankers American financial company founders American financiers American hedge fund managers American investors American money managers American racehorse owners and breeders American stock traders Businesspeople from Chicago Living people Long-Term Capital Management New York Racing Association executives Northwestern University alumni Businesspeople from Greenwich, Connecticut University of Chicago Booth School of Business alumni