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LTCM's Failure Lessons
LTCM's failure lessons are now taught by all prominent business schools, but they leave out the winning lessons trend follower Jerry Parker teaches. Trend following strategies can be understood by anybody, no high-level math only PhDs can comprehend. There are individuals who not only want to make money, but also want a rock star as their portfolio manager. They want to think that the strategy being used to make them money is exciting and state of the art. Trend followers are not in the game for notoriety, only to win. I always wonder what would have happened if LTCM had been allowed to implode without preferential government interference.