Long-term Capital Management (LTCM) was established in February 1994, and its headquarters is located in Greenwich, not far from new york. It is a hedge fund mainly engaged in arbitrage of fixed-rate debt instruments. The rescue of the Federal Reserve has brought a concept to society-too big to fail.
Since its establishment, LTCM has maintained excellent performance. The company's trading strategy is "market neutral arbitrage", that is, buying low-value securities and selling high-value securities.
LTCM organically combines the historical data of financial market, academic reports and related theoretical research data with market information, processes a large amount of data by computer, forms a relatively complete computer mathematics automatic investment system model, establishes a huge bond and derivative portfolio, and carries out investment arbitrage activities. With this advantage, LTCM has made great strides in the market.
Extended data:
1998, on August 17 this year, the Russian government announced the devaluation of the ruble and the freezing of repayment of 2,865.438 billion rubles (about 6,543.803 billion US dollars at that time). Long-term Capital Management Corporation (LTCM), an American hedge fund, suffered huge losses, which triggered panic in global financial markets.
The US Treasury Secretary and the Federal Reserve organized some large commercial and investment banks, and invested $3.625 billion in exchange for the management right and 90% equity of LTCM.
Long-term capital management companies in the United States are mainly active in the international bond and foreign exchange markets, using huge investments from private customers and large loans from financial institutions to specialize in financial market speculation. Together with Quantum Fund, Tiger Fund and Omega Fund, it is called the four international "hedge funds".
Baidu encyclopedia-American long-term capital management company
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