Yet John Meriwether, the hedge fund's founder and a former head of trading at Salomon Brothers, remains a shady figure.

ECONOMIST: Business books (4)

And John Meriwether, a figure of widespread ignominy after Long-Term Capital collapsed, has simply launched a new hedge fund, JMW Partners.

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Wall Street prides itself on being a meritocracy, but those who fail spectacularly often get a second chance: think of John Meriwether of Long-Term Capital Management.

ECONOMIST: They used to walk on water. Now they are back from the dead

Our favorites: Joe Torre, the former Yankees manager now signed with the Los Angeles Dodgers, and John Meriwether, the former head of notorious hedge fund Long-Term Capital Management.

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John Meriwether is the poster child of the success-in-failure principle.

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