Aug 23

John Meriwether is a good example of why many investors never learn from their mistakes. Investors delude themselves thinking “This time its different”

John Meriwether was the co-founder of Long Term Capital Management, together with two future Nobel Prize winners, Myron Scholes and Robert C. Merton. With this two brainys on board it seemed this hedge fund was a sure bet.

The fund got off to a flying start, it raised $1.01 billion from high net worth individuals. It delivered annualized returns of over 40% (after fees) in its first years. Nothing could go wrong.

But when the Russian crisis hit in 1998, it lost $4.6 billion in less than four months. With mounting losses and a bailout from the FED the fund was closed in early 2000.

You would have thought John Meriwether had learnt from his mistakes. But immediately after LTCM closed shop Meriwether launched JWM Partners. A fund that would continue many of LTCM’s strategies. He managed to convince investors to invest in him by promising them this time he was going to use less leverage.

Whoever said lightening doesnt strike twice was wrong, just like the Russian Financial crisis of 1998 killed LTCM, the 2007 Credit crisis struck JWM partners. JWM Partners LLC was hit with 44% loss from September 2007 to February 2009 in its one of its fund. As such, JWM Hedge Fund was shut down in July 2009.

Never buy into the idea “This time it is different.”

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , ,

Jun 18

With high net worth individuals around Los Angeles, the city has a large population of financial advisors. Financial advisors are spread from high street wallstreet to your next door independent advisors.

If your search is for the high street advisors, one suggestion is to look at the ranking of California financial advisors by barrons online.

Top Five Financial Advisors around Los Angeles

According to Barron the following financial advisors made up top six of their ranking :-

  1. Drew Zager Morgan Stanley PWM
  2. Steve Lockshin - Convergent Wealth Advisors
  3. Bruce Treitman - Deutsche Bank Alex. Brown
  4. Palmer Murray - Morgan Stanley PWM
  5. Richard Jones - Merrill Lynch
  6. Steven Levine - UBS Financial Services

Others notable financial advisors near Los Angeles and not on the Barron list and whom you can easily find online are:-

  1. Westlake Financial Services Los Angeles
  2. Axa Advisors Los Angeles
  3. Strategic Financial Group Los Angeles
  4. HREC Financial Advisors Los Angeles
  5. Oaktree financial Los Angeles

Just keep in mind being more expensive does not mean they are the best. One of the best ways to find potential financial advisor is by talking to others. Check with friends and family or anyone else that you trust for referrals as well. Your family and friends have your best interest at heart and you can never go wrong asking for their advise.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , ,

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