Larry Hilibrand
Encyclopedia
Around 1992, arbitrage
trader Larry Hilibrand was synonymous with Wall Street
hubris
when he became the top-paid trader at Salomon Brothers
. As one of the most mathematically astute traders, Hilibrand became the youngest managing director in Salomon Brothers history. Subsequently, he was part of a group of traders who had come to epitomize hedge-fund hubris. The fund he helped steer, Long-Term Capital Management
, almost caused an apocalypse
on the Street.
Since the LTCM debacle in 1998, Hilibrand has flown under the radar. He joined a group led, yet again, by John Meriwether
that has since started a new fund, JWM Partners LLC.
JWM Partners closed in 2009, having lost 42% of its capital.
Hilibrand currently lives in Greenwich with his family.
Arbitrage
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices...
trader Larry Hilibrand was synonymous with Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
hubris
Hubris
Hubris , also hybris, means extreme haughtiness, pride or arrogance. Hubris often indicates a loss of contact with reality and an overestimation of one's own competence or capabilities, especially when the person exhibiting it is in a position of power....
when he became the top-paid trader at Salomon Brothers
Salomon Brothers
Salomon Brothers was a bulge bracket, Wall Street investment bank. Founded in 1910 by three brothers along with a clerk named Ben Levy, it remained a partnership until the early 1980s, when it was acquired by the commodity trading firm Phibro Corporation and then became Salomon Inc. Eventually...
. As one of the most mathematically astute traders, Hilibrand became the youngest managing director in Salomon Brothers history. Subsequently, he was part of a group of traders who had come to epitomize hedge-fund hubris. The fund he helped steer, Long-Term Capital Management
Long-Term Capital Management
Long-Term Capital Management L.P. was a speculative hedge fund based in Greenwich, Connecticut that utilized absolute-return trading strategies combined with high leverage...
, almost caused an apocalypse
Apocalypse
An Apocalypse is a disclosure of something hidden from the majority of mankind in an era dominated by falsehood and misconception, i.e. the veil to be lifted. The Apocalypse of John is the Book of Revelation, the last book of the New Testament...
on the Street.
Since the LTCM debacle in 1998, Hilibrand has flown under the radar. He joined a group led, yet again, by John Meriwether
John Meriwether
John William Meriwether is an American hedge fund executive, seen as a pioneer of fixed income arbitrage.-Education:...
that has since started a new fund, JWM Partners LLC.
JWM Partners closed in 2009, having lost 42% of its capital.
Hilibrand currently lives in Greenwich with his family.
External links
- http://www.businessweek.com/2000/00_13/b3674095.htm
- http://www.magnum.com/hedgefunds/articles/1999/990124hf.asp