Rosenfeld plants hedge in Rye Brook

Eric Rosenfeld, one of the financial engineers behind the collapsed Greenwich hedge fund Long-Term Capital Management (LTCM), reportedly is setting up a new fund in Rye Brook, N.Y., called Quantitative Alternatives L.L.C.

Founded by John Meriwether, LTCM created sophisticated computer models in the 1990s to achieve massive returns, but collapsed after Russia defaulted on debt. Several banks spent $3.5 billion to bail out the firm and head off a panic in the world”™s financial markets.

Meriwether went on to start JWM Partners in Greenwich, where Rosenfeld worked for six years, before becoming president of Greenwich-based Paloma Partners L.L.C.

Rosenfeld is setting up Quantitative Alternatives L.L.C. in Rye Brook, according to Bloomberg News. Joining Rosenfeld are Robert Shustak and Bruce Wilson, the former chief financial officer and controller, respectively, of LTCM.

Myron Scholes, an LTCM employee who shared the Nobel Prize for creating an options-pricing formula, runs a Rye Brook hedge fund called Platinum Grove Asset Management L.P.

Another LTCM employee named Hans Hufschmid runs GlobeOp Financial Services L.L.C., a Harrison, N.Y., firm with a Hartford firm that runs back-office operations for hedge funds.