Meriwether stumbles again

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While there’s no threat that John Meriwether’s current foibles will bring down the U.S. financial system – as was feared when his prior firm, Long-Term Capital Management (LTCM), hit the skids in 1998 – that’s unlikely to be much comfort to investors in his largest hedge fund at JWM Partners, which has fallen 28% this year through mid March.

The Relative Value Opportunity fund, which follows a leveraged bond strategy that employed nearly 15-to-1 leverage, had reportedly fallen 9.19% for the year through February 29 prior to its more severe March decline. The fund gained 5.6% last year.