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Not quite. LTCM ''went directional'' (i.e began speculating outright) in several mkts **before** the crunch really started to hit in late July-early August. And, as the mkt typically tends toward maximum pain, most of these spec trades went against them, too.

Notwithstanding, they plunged on. In fairness, a number of their positions were both large and illiquid, not much could be done about them directly. However, in a curious process of shat might be called ''avoidance avoidance'', LTCM didn't even attempt, afaik, any indirect hedges for interest spreads that were going South on them.

Then, they decided to spec Russia from the long side. Total complete insanity. What could they have been ''thinking''?? Say goodnight, Gracie.

Thanks for the kind word, and good trading to you!