Long-Term Capital Management, LP (LTCM) was in business participation in trade strategies for using market pricing discrepancies. Because the firm employed strategies to make money over a long horizon - from six months to two years or more - it took a long time - the time the funding structure is designed to allow it to withstand short-term market fluctuations. In many of its transactions, the firm was actually seller liquidity. LTCM typically seek to hedge risks - the impact of the components of their positions, which were not expected to add more value portfolio and increase value-added component of its risk exposure by borrowing to increase the size of their positions. Position of the Fund were diversified across many markets. This case is set in September 1997, when, after three and a half years of high investment returns, the fund LTCM capital rose to $ 6.7 billion. Because of the limitations of the available liquidity of the market, LTCM was considering whether it was reasonable and appropriate time to return capital to investors. "Hide
by Andre F. Perold Source: HBS Premier Case Collection 23 pages. Publication Date: November 5, 1999. Prod. #: 200007-PDF-ENG
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