When Genius Failed: Lowenstein Talks LTCM
Brett D. Fromson: In the sort of $5 million to $20 million range.
Roger Lowenstein: They may have less.
Brett D. Fromson: Meriwether's new fund -- all the same cast and crew?
Roger Lowenstein: No. There was a fair amount of animosity among the partners when they split up. If you weren't part of that core group ... it wasn't something you got promoted into. I mean, this group had been together at Salomon for so long. There was antagonism towards a bunch of the other partners, towards Hillebrand and Agani, both because they were the predominant influence in the trading book and because their style didn't tend to be open to dissension. They just weren't open to hearing other ideas, particularly ideas that they were taking too much risk, and so on.The partners all shared blame equally because they all ran the risk management committee. So it's not to say that Hillebrand had the power to override them but the cohesiveness broke up. Myron Sholes is sort of a hot-tempered Nobel laureate and has no love lost for Larry Hillebrand. Jim McIntee was a long close friend of John Meriwether and urged him to lighten up, but was ignored. He's gone off on his own now. Brett D. Fromson: Let me ask you, I wrote a column about Meriwether's new fund having gotten offered a prospectus, and I was looking through it. The reason I wrote the column was that I was just struck by how much they were going to charge people for what they said would be 15% to 20% returns. Roger Lowenstein: Yes.
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