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Back in 1998, Long Term Capital Management, the most famous hedge fund on the planet, blew up and nearly took all of Wall Street down with it.  It was pretty spectacular.  But what was even more spectacular was what happened next: less than a year after LTCM’s collapse, its founder, John Meriwether, started up a new fund.  And people invested in it!

Well, fine.  It was a more innocent time, after all, and there were people who really believed that LTCM had just run into a once-in-a-century spell of bad luck.  Can’t blame a guy for that.  But last year Meriwether’s new fund went belly up too.  So that’s twice.  He must really be a pariah now, right?  Right?

Hedge fund manager and arbitrageur, John Meriwether, is setting up his third fund, The Financial Times reported. The man behind Long-Term Capital Management is making the move just three months after he chose to close his second fund manager, JWM Partners.

I guess you saw that coming, didn’t you?  But it’s even worse than you think:

JWM Partners closed last year after losing 44% amidst the market turmoil of 2008. Hedge funds typically have “high water marks” which means that investors don’t pay performance fees to the fund manager in subsequent years unless the fund surpasses its highest point. Thus, the solution for fund managers whenever they have a bad year is to liquidate, wait a bit, and form a new fund?!?! Anyone who was invested in the old fund and the new fund thus pays fees twice: you paid when JWM Partners reached its high water mark, and now you’ll pay again if/when Meriweather Cubed (not the real name) manages to make money — the same money JWM Partners effectively lost after reaching its high water mark.

Damn.  Words fail.  Via Felix Salmon.

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We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

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