LTCM starts cost-cutting exercise

ABOUT A dozen staff at the London offices of Long-Term Capital Management are believed to have lost their jobs as part of cost-cutting exercise at the hedge fund that was taken over by a consortium of 14 banks last month. A total of 33 people or 18 per cent of 178 global staff have gone.

The cutbacks have mainly affected emerging markets equity research and trading staff. LTCM, which is run by John Meriwether (pictured), is negotiating a $1bn rollover credit facility with banks to supplement last month's $3.75bn cash injection. The hedge fund, which sought the help of the US Federal Reserve after losses in the bond markets, also has offices in Tokyo and its base in Greenwich, Connecticut. None of the 16 partners have so far gone.