High Quality Content by WIKIPEDIA articles! Long-Term Capital Management L.P. (LTCM) was a speculative hedge fund based in Greenwich, Connecticut that utilized absolute-return trading strategies (such as fixed-income arbitrage, statistical arbitrage, and pairs trading) combined with high leverage. The firm`s master hedge fund, Long-Term Capital Portfolio L.P., failed in the late 1990s, leading to a bailout by other financial institutions, under the supervision of the Federal Reserve.