Myron Scholes, awarded the 1997 Nobel prize in economics for ground-breaking work on financial derivatives, is to return to Stanford University.
Dr Scholes, who shared his Nobel prize with fellow LTCM partner Robert Merton, said he originally planned to leave the fund last year. However, he delayed his departure following the crisis that engulfed LTCM in August and September.
The other LTCM departure is William Krasker, a Wall Street veteran who joined the hedge fund from the investment bank Salomon Brothers. Like Dr Scholes, Mr Krasker plans to act as a consultant to LTCM.
Both men - the first well-known departures from LTCM since its multi- billion dollar bail-out in the autumn - will retain their investments in the fund.
LTCM hit the headlines last September after it lost more than $4bn in the wake of the Russian debt default. The US Federal Reserve co-ordinated a $3.6bn bail-out of the fund amid fears that its collapse would present a risk to the world's financial system.