28 September 1998 - LTC: choosing a name

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Cover your weaknesses up front. Here’s how to work out a name:

“Let’s see, we’ll be borrowing huge amounts so we can earn big returns speculating on small movements. That’s a risky short-term strategy that relies on leverage rather than capital, so there’s only one possible name. We have to call it Long-Term Capital.”

clue:

Long-Term Capital is a hedge fund (a kind of investment company) which recently had to be rescued after it dug itself in too deep.

give me a clue so sweet and true

the Daily Whale || copyright 1998, 2024 Jay J.P. Scott <jay@satirist.org>