Meriwether Set to Start New Hedge Fund on Dec. 1

Long-Term Capital Management is just about long gone.

In its place, John Meriwether, LTCM's founder and legendary bond trader, is set to start JWM Partners on Dec. 1. So far, he has raised $300 million to $500 million and continues to seek more money, according to Peter Rosenthal, a spokesman for the old LTCM hedge fund, confirming news service reports.

Meriwether still must repay the $660 million LTCM owes the consortium of Wall Street banks that bailed out the hedge fund last fall. LTCM marked the one-year anniversary of that $3.6-billion rescue plan just this past October.

Deutche Bank is reportedly raising money for JWM Partners, even though the bank participated in the bailout last year. A Deutsche Bank spokesman declined to comment on whether the firm is acting as prime broker to Meriwether's new hedge fund or whether the bank has been paid back fully. JWM still "has a private placement offering going on. They're still raising money," Rosenthal says. ...