Ironically, having passed in 1994 on the chance to invest in LTCM and temporarily get rich, I made money in 1998 by exploiting the distorted market prices left in the wake of their collapse. LTCM’s loss was our gain in Ridgeline Partners.
Other institutions had pretty easy access to LTCM’s positions as they were unwinding it, allowing them to take advantage of the fire sale. This didn’t feel in the best interests of the economy, but made lots of other hedge funds and banks rich. /When Genius Failed/ goes into this quite well.
