Quote of the day: trickier than LTCM

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On Friday, Bloomberg quoted a former LTCM partner as saying the $1.9 trillion hedge fund industry faces “much worse” conditions than in 1998, when Long-Term Capital Management LP collapsed.

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“It’s definitely a trickier environment. The market is much worse that it was in 1998. Then it was just LTCM, but this impacts everybody.”

Hans Hufschmid, former partner at LTCM

To date, we have not seen an LTCM-like blow up. Are these guys good, lucky or is there risk lurking in the weeds? Is the commodity-play unwind just the thing to bring the dead bodies to the surface? The violence of the commodity and currency moves has the faint whiff of panic.

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